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effect of paying bad debt

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effect of paying bad debt

HI all - I have a couple of small unpaid collections on my report.  Is there a negative impact on my credit score if I pay these off?  It seems anti-intuitive, but I vaguely recall reading something along those lines because it changes the dates on the bad accounts, making them appear more recent? 
My problem is that I am planning to apply for a mortgage in 6 months and I have to have these items cleared per my mortgage broker - so I can't just let them fall off with time (plus, I really want to pay the old debts off on principle).  Will my score be reduced after making the payment?
Thanks!
1 REPLY
Super Contributor

Re: effect of paying bad debt



justmoony wrote:
(plus, I really want to pay the old debts off on principle). 
Good on yer mate.  I agree
 


justmoony wrote:
 
My problem is that I am planning to apply for a mortgage in 6 months and I have to have these items cleared per my mortgage broker - so I can't just let them fall off with time


As you have to pay them regardless, try for a PFD

The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid