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Question By
Katelyne

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Will paying off collections account do anything to my credit score?
Back story:

I'm 21 years old and am trying to build my credit. Recently got my free credit report and found out I have an account that went into collections. It was a medical bill that I did not know I had because at the time I was living at home and my mom was taking care of everything. It is really hurting my credit, even though my other accounts are in good standing. I've been reading so much online about paying off the collection vs letting it run it's course of 7 years so to speak. It's all very confusing. If I pay off the collection will it do anything to my credit score or am I screwed for the next 7 years?

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Collection Accounts

I had 2 medical bills under $200 each in collections on my Experian credit report.  Paid the first one, my Experian score went up 21 points.  Paid the second one, it went up another 40+ points.  So in my case, it helped a LOT.

Top Contributor
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If you owe the bill, then the right thing to do is to pay it.  You may be able to negotiate away any interest or penalties and have them withdraw the credit hit. But get it in writing if they say that they will take less.  Collection agencies are notorious for lying just to get a payment.  And NEVER let them take a payment electronically or on a card or you may find your account buggered.

Once paid, it will help your rating as an unpaid collection is a bigger hit than a paid one.

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