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Paying off a bad debt or collection will not improve your scores. The subsequent entry of 'paid collection' or 'paid charge-off' is still a negative entry, though mortgage lenders are happier to see that they are paid. The sad truth is paying an old collection could hurt your scores because the updated status entry appears to FICO as newer and therefore more damaging.

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โˆ™ 2015-07-16 18:15:38
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Q: Is it better to just allow the bad debt that has been collected fall off in seven years or should the debt just be paid off in full and which would be more beneficial in improving your credit score?
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