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Credit repair with accounts in collections



  • Official comment

    Hi Devan,

    This is a tricky situation!  Here's a great resource from our NerdWallet content that explains a little more thoroughly how paying a collections account may affect your credit: 

    Does Paying a Collections Account Help Your Credit?

    Additionally, this resource can help you find a professional to talk to about your situation: 

    Best Financial Advisors of October 2020

    Good luck! Please let us know if you have any additional questions and we'll do our best to help.

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    Paying the debt in full will not "reset" anything. a "partial" payment might. They will still fall off at the same time.  In the mean time, a PAID collection scores better (or at lease looks better) than a DEFAULT collection, so it should mildly increase your score or your approval odds.

    "Doing the right thing" aside... ask yourself what the next 3 years holds for you. Will you refinance a house? buy a car? take a loan? put a kid thru school?  If you know you can sit pretty for the next 3 without needing that extra few points, I can say I would rather be liquid for cash than credit in this economic climate.

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    Devan ER

    Thank you, that REALLY helps! I shouldn't need the credit for anything. Additionally, I managed to get a car loan and I'm paying that off and joined Self for some good points.

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