Paying off collections

[Anonymous]

I have two collections that are problably two or three yeaers old and I want to get them paid off. Will I take a major hit on my credit score for paying these off? I have another large one that I am paying off but it is listed under accounts and I actually got a tiny score bump when my balance decrease hit the report.

[RobertEG]

No.  FICO scores a collection as a collection, regardless if paid or unpaid. It does not change your scoring, or affect when it drops from your CR.

The main benefit of paying a collection is to forestall the chance that legal action will be brought against  you for collectlion of the debt in court.  A secondary benefit is that an unapaid collection is the kiss of death in a manual review of your CR.