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Does paying recent collections improve credit score

Valued Member

Does paying recent collections improve credit score

Hell All,

I have read numerous posts about paying old collections and whether or not it will help your credit score.  I am curious about if paying a new collection will usually improve your score.  I had a collection pop up from an old tmobile bill and after an unsuccessful dispute as well as a refused PFD ,i decided it best to pay the collection which was small with the hopes to dispute later and since paid, the collections company would just ignoree and the item would be deleted.  However, I recieved a scorewatch alert saying the account changed status and along with that came a 40 pointg increase!  The collection was first reported two months ago. So far there is nothing else I can credit this towards. 

Has anyone seen this?  I have one more recent collection that I would like to pay as well if this results in a score increase.  I am aware of the side affects of paying OLD collections and making them current, but never heard any information on brand new ones. 


Thank You

Message 1 of 4
Moderator Emeritus

Re: Does paying recent collections improve credit score

Just paying a collection generally doesn't improve scores.  However it does improve your credit report.  IMHO paid is always better than unpaid because it can't come back to haunt you when you least expect it.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
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Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 2 of 4
Frequent Contributor

Re: Does paying recent collections improve credit score

I've seen paid collections both help and hurt your score - the only one that really improved my score significantly though was First Premier and thats only because the amount was being factored into my revolving credit


Starting Score: TU:619 (02/24/2012) - EQ:629 (02/24/2012)
Current Score: TU:632 (06/21/2012) - EQ:672 (06/21/2012)
Goal Score: 740

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Message 3 of 4
Valued Member

Re: Does paying recent collections improve credit score

I am looking a tthe scorewatch update and I can only assume the score lift was due to the item previously reporting as 120 days late and now it is current, paid in full. 

Message 4 of 4