answersLogoWhite

0


Best Answer

Yes, because by doing that you are converting a Negative on your credit history to a Positive action. Those who look at a credit report are looking to see if you are making efforts to "turn things around." Paying a collection does NOT improve your credit and may, under certain circumstances, cause even more deductions to your credit score. This is one of the fallacies about credit. The factor that causes the largest amount of deductions to scores is when a derogatory account was last reported to the bureaus, not the amount owed or the status (paid or unpaid). A paid collection account can be just as damaging as an unpaid collection. The first answer was incorrect. The only thing that will improve your credit rating is to have the collection removed from your credit report. Offer to pay the collection in exchange for a deletion.

User Avatar

Wiki User

โˆ™ 2008-05-10 17:16:30
This answer is:
User Avatar
Study guides

Add your answer:

Earn +20 pts
Q: Will paying a collection agency improve your overall credit rating?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

How do you find out from a collection agency who sent you to them for collection when you never was notified that you were in collection you discovered it on your credit report?

File a dispute with the credit reporting agency.


Collection agency laws?

if a collection agency has not bought out my debt from the original company can the collection agency look up my credit report?


If you settle an old credit card debt with a collection agency paying the negotiated price in full will the collection agency remove the collection from your credit report?

No the collection will not be removed from the credit report. They will show it paid in full.


How many times can a collection agency inquire on your credit report?

Unless you have given a collection agency written permission to pull a full credit report they are in violation of credit laws.


Can a collection agency charge you with credit card fraud?

No.


What does a collection agency do to your credit?

They don't do anything. Failure to pay bills causes credit to be reported badly and your credit score to go down. All a collection agency does is go after you for the money.


How can you mend your credit after a paid collection?

Only the credit bureaus the collection agency can remove a collection from your credit report. The collection agency won't do it now since it is paid and they have no reason to. You can dispute it to the credit bureaus and ask for verification on the account. They will have 30 days to verify the items or it must be removed from your credit report.


Can an unpaid ambulance bill hurt your credit?

Yep! If the ambulance company turns your account over to a collection agency that agency might report the collection on your credit. Medical collections are the most common type of collection on a credit report.


What happens if you do not pay a collection agency?

if a collection agency isn't paid, the debt can be put on a persons credit report. The collection agency can also choose to garnish a persons paycheck.


Can a collection agency collect interest on your debt?

Yes, Collection agency can do that. But contact a good collection agency like Guardian Credit Services, they know will how to deal with customers to get money


Is sunrise credit services legitimate?

Yes. I used to work for them. They are in Farmingdale, NY.New Answer from Wanda Yvette with Improve Credit, LLC:?If you check online you will notice that this company is a collection agency. They do not have a rating with the Better Business Bureau. The reason for that is they have not registered their business with the BBB. They seem to be a collection agency in New York.?


Who is ICC collections?

Interstate Credit Control - they are a collection agency

People also asked