Did you know that if you pay off an old account that is in collections, it will damage your credit even more? You see, when it went into collections the first time it lowered your score. But over time your score would eventually go back up. But, if you pay any money toward that account, even if it's only a dollar, it makes the account current again. So it will knock your credit score again. So that makes two hits on your score for just one account. Does that mean I suggest never paying the debt off? No, not at all. If you do have the money to pay it off, tell the collection agency you will do it under the condition that all negative remarks about the account will be removed from your credit report. And get this in writing!! If you don't get it in writing they will probably leave it on ...
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