Working in credit repair, I deal with a lot of misinformation and misconceptions about credit every day. By far the most common misconception is the idea that paying off a collection account is a 'catch-all', complete fix. This could not be farther from the truth!
The fact is, It is the event of having a collection account that is damaging your credit report → not whether or not the collection account has a balance owed. So, simply paying off a collection account will show the account on your report as paid - but it won't raise your score!
That isn't to say that you shouldn't pay off your collection accounts. Certainly it has its benefits, such as stopping the persistant efforts and calls of your collectors! But to really improve your credit score, you need to have a professional credit repair company delete this collection account!
:)
Matt
Toll Free: 888-NCFIXER (623-4937)
Toll Free Fax: 888-FAX-4020 (329-4020)
Local: 860-282-6181
281 Hartford Turnpike Ste 500
Vernon CT 06066
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