Why Paid Collections Account Will NEVER Increase Your Credit Scores

Hey there, Yusheeka Gray here with DIY Credit, and I want to talk to you in this video about why pay collection accounts will never increase your credit scores. By the time you're done watching this video, you will have a very good understanding of how collection activity on your creative reports works and why it can't increase the score.

The first thing that it's very important for you to understand is that collection accounts, period, paid or unpaid, are negative, inside of the credit scoring algorithm. That's just how the algorithm works. Now, the newer, the negative, the more it hurts your score. The older, the less it impacts your score.

That's just how it works. There's no getting around it. Now with that being said, let's just say you have a collection account that's three years old and it's not weighing on the score as heavily anymore, but you go and you pay it. Now it updates, it refreshes on the credit report as if it's a new collection item.

It's going to pull that score down a lot more as if it was just three years old. So paying on this account, it refreshes it, it makes it newer, and again, the newer, the negative, the more it hurts your credit score. Don't let anyone tell you that paying off collection accounts or any negative item, is going to help your score because it will not, I promise you.

I hope this information has been helpful to you. If you need help with your credit reports or your credit scores, please do not hesitate to reach out to us. You can click this link to schedule a free victory consultation for a time that's convenient for you or you can give us a call at (803) 240-8344 or (803) 784-8100.

Thank you so much for watching this video, and bye for now.