 TITLE: How to Pay Off Debt Collections CONTENT: How Does Paying Off Debt in Collections Impact Credit?\n------------------------------------------------------\nCollection accounts can drag down your credit scores, but paying off or settling a debt that's in collections may not necessarily improve your credit scores. Newer credit scoring models ignore collection accounts with a zero balance, but older credit scoring models take those accounts into consideration. This means paid-off or settled collection debt may bump up your credit scores under newer scoring models, yet paid-off or settled debt may not make your credit scores budge under older scoring models.\nSince it's not likely you'll know which credit scoring model or models your future lenders will use, it's impossible to say for certain whether paying off a collection account will help you secure better terms on credit.\nA collection account remains on your credit report for seven years from the date the debt originally became overdue. After the seven-year window closes, the collection account is automatically removed from your credit report. Unfortunately, you can't get a paid-off or settled collection account removed from your credit report before the seven-year period ends. END