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Registered: ‎02-05-2013

Credit Cards- Paying off old delinquent credit cards



My credit score is 586.  I have two delinquent credit cards that went to collections. I wanted to pay that off as well as my current GOOD STANDING auto loan next month when I get my tax refund. 


Does paying off old -debt credit cards actually help? If so how long after i pay those off and pay off my auto loan will I see an increase in my credit score? Thank you

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Posts: 32,881
Registered: ‎08-04-2007

Re: Credit Cards- Paying off old delinquent credit cards

Paying any collection won't help your FICO. However, for some, if the charged-off CC still reports a balance and a CL and is updating regularly, and the utilization from that charged-off CC is hurting their overall util, then paying that bad CC can potentially improve your score.


For the car loan, do you have any other open loans reporting? If so, you probably won't see any score change when paid off. There might be a slight chance of an increase if most of your accounts are reporting a balance. FICO likes to see most of your accounts at $0.

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