7. Do Not Pay Off Collection Accounts (Unless You Do This Below)
If you already have a somewhat old collections account on your credit report, don’t bother paying it off. Paying it off can re-age the collections account and will not improve your credit score by any means. I repeat, paying off your collections does not improve your credit score. Collections, like anything else, will organically go off your credit report after 7 years. However, if you want to pay your collections account, make a deal with the creditor or collection agency. Tell them that you will pay the collection account in full of they agree to remove the collection account after you’ve made your payment. This is the only way to improve your credit score by paying off your collections. Doing this may require you to get in touch with the collection agency’s dispute and appeals department. You may also need to tell them the specific reason why your collection account is erroneously your credit report. Get everything in writing.