If you pay off some bad debts on your credit report will your score go up??

Question

I have some small things in collections that will be easy to pay off now-but they have been on for a long time and will fall off in about 2 years.

Answer 1

Here's the thing, the only wat that it will improve your score is if you can negotiate a payment for deletion meaning that you would pay the deliquency only if it gets removed from your report. If it's slated to fall off in the next 2 years, you might as well wait, since you've waited this long already

Answer 2

No, your scores will not increase via paying off bad debts. If that's the case, then people with jacked up credit would have the best scores by buying their way back into the upper tiers of credit scorers.
The only two things that make your score go up are 1) paying your bills on time and 2) reducing your total debt. That's all. Once you settle your debts, just make sure they are reflected as such on your report and just wait for them to fall off from there.
Good luck!

Answer 3

It used to hurt you but does not any longer due to changes in FICO score formulas. It may not necessarily cause your score to spike though.

If you are planning a major purchase on credit soon, then pay them off in lump sum payments (no payment plans). If not, then you might also consider waiting for them to fall off.

When paying off old debt, focus on the newest accounts first. By the time you get to the oldest ones, they may have already fallen off your credit report.

Answer 4

Go ahead and pay them off and your score will go up. It would be better than waiting the 2 years for them to fall off. Call them and you may be able to settle for less than you owe.

Answer 5

Yes it will go up but it takes time..