 TITLE: These Tips Can Help You Improve Your Credit CONTENT: Does Paying Off Accounts in Collections Improve Credit Scores?\n--------------------------------------------------------------\nIn general, paying off an account in collections is a smart move, as it will close the chapter on the delinquent account and end contact with your creditor and debt collector. But the associated missed payments on the account will remain on your credit report for seven years, and the appearance of an account in collections could lead to denials when you apply for certain loans.\nWhen you pay off an account in collections, your balance will drop to zero, and some credit scoring models and versions will not factor this account into your credit score. That's a good thing: It means your credit score will likely increase, because the collection account alone is no longer a negative contributor to your score.\nBut that's only true for the FICO® 9 and VantageScore® 3.0 and 4.0 credit scores. So if a lender uses an older version to make a lending decision, paid collections accounts will still factor negatively into your score, and your score will not improve because you've paid off your balance.\nIt's still a positive move to pay off an account in collections. But an improved credit score may not be the No. 1 reason to do so. END