How Much Should My Score Raise If I Pay Off Three Collection Debts?

Paying off debt can increase your credit score.

Paying Bills Improves Credit Scores.

According to myFICO, paying bills on time improves credit scores. The same can hold true when paying off three separate collection accounts. Paying off debt demonstrates that you are a responsible consumer.

Starts the Clock.

Paying off any old debt re-ages the account. According to the Fair Debt Collection and Practices Act, collection accounts can be reported for up to 7 years, paid or not. Making a payment on aging debt starts a 7-year cycle of that negative mark over again. This can negatively impact your score.

Bottom Line

According to MSN Money, collection accounts are often reported with a zero balance. Thus, paying off three collection accounts with a zero balance will not have any positive or negative impact on your credit score.