Trying to improve credit score, should i pay off collections?

Deal Score0

im 21 yrs old with bad credit already, i have like a cable bill and cell phone bill in collections that i want to pay off. will it improve my score any?

4 Comments
  1. Reply
    Scott
    August 25, 2011 at 10:49 pm

    It won’t improve it, but it will keep it from getting worse (if it’s all you owe).

  2. Reply
    Richie Cutler
    August 25, 2011 at 11:02 pm

    Paying them off wont improve it but it will stop it from getting any worse and yes you need to pay them off. Paying off your bills in time will improve your score.

  3. Reply
    Huntsman
    August 25, 2011 at 11:39 pm

    These companies tend to sue you.
    Then you get hit with court costs and wage garnishments extra costs
    It will not improve your score to pay them or settle
    But employers check reports – not a score
    – Best friend works next to HR
    They will see the amount as PAID and it will be favorable.

    You can negotiate for 50% of what you owe – it will remain on your reports.
    OR. (this is not easy to do) you can do a pay on delete.
    You pay the item in full and they can delete it – ask here how to do it right.
    Most important – you have to get it in writing first
    And if you negotiate never send them a check or account number since they can tap into the account for the rest

  4. Reply
    CatDad
    August 25, 2011 at 11:40 pm

    If all your defaults involved non credit card defaults like cell and utility bills, then paying the debts back can help your credit score bounce back over time…it might take one to two years though.
    – The good news is that these types of collection accounts are far less damaging to your credit than credit card defaults, which are devastating to your credit score.
    How to pay collection accounts: https://sites.google.com/site/creditdebtadviceonline/how-to-pay-collection-accounts

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