Can Paying an Older Collection Hurt Your Credit?

Paying an older collection won't hurt your credit, and it won't reset the clock for how long the collection remains on your credit report. In fact, if you have an older account in collections, it can be beneficial for you to work with the collector to pay off the debt.

Collection accounts stay on the credit report for seven years from the original delinquency date of the debt, which is the date of the first missed payment after which the account was never again brought current. The more time that has passed since the original delinquency date, the less of an effect it will have on your credit scores.

Although paying off a collection account will not remove it from your credit report, lenders may view a paid collection account more favorably than an unpaid one. And, many of the newest credit scoring models will exclude paid collections when calculating your score. As a result, paying a collection in full could have an immediate positive impact on your scores.

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Join our live video chat every Tuesday and Thursday at 3:00 p.m. ET on Periscope. Rod Griffin, Director of Public Education at Experian, is available to answer your questions live.
Scoped on: 7/31/2018

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