Paying Off Old Collections

Can Paying off Old Collections hurt you?

The short answer is… Yes.

Paying off those old collections seems like a great idea, your credit score may decline if you pay a collection that is older than 2 years. When you pay off a collection that has been lingering on the report for some time, the date of last activity may change, causing the  account to appear fresh. Your credit report will take the hit and your score will drop.

Always try to pay your accounts on time. If you are like many Americans who have had an account fall to a collection, make an attempt to settle it as soon as possible. If the collection remains unpaid for more than 2 years, paying it will result in a decline in your score. Your best option would be to consult credit professionals.

3rd party collections must abide by certain standards set forth by the Fair Credit Reporting Act (FCRA.) If collection companies go against the FCRA, then your collection may be in violation. Violations can result in the collection getting removed from your account, and in some cases, a cash settlement for you!

Better Qualified has a team of attorneys looking through all of our client’s collections for violations. If  you were looking to pay an old collection, first find out if you can get the collection removed before it effects your credit score.

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