Does Paying Off Collection Accounts Help Your Credit Score?
This question comes up time and time again. Does paying off collection accounts help your credit score? The short answer is no, it does not help your FICO sore. This doesn’t mean it doesn’t help your overall credit picture however.
When you pay off obligation, there is always satisfaction knowing you will no longer be hounded for this negative debt.
There is also a pretty robust goodwill letter strategy that requires the collection accounts to be paid, so all is not lost if you already paid a collection account and realized your score did not increase.
How Does Paying Off Collection Accounts Help Your Credit Score?
The only way paying off collection accounts will immediately help your credit score is if you have them removed, with either a pay for delete request or a dispute after you pay off the debt. The latter is not a guaranteed removal, but the first leads to many removals. You should always attempt a pay for delete at all possible.
So before you ask yourself, does paying off collection accounts help your credit score, remember, that paying off debt is always a good thing, regardless of credit scoring implications.
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