- According to myFICO, paying bills on time improves credit scores. The same can hold true when paying off three separate collection accounts. Paying off debt demonstrates that you are a responsible consumer.
- Paying off any old debt re-ages the account. According to the Fair Debt Collection and Practices Act, collection accounts can be reported for up to 7 years, paid or not. Making a payment on aging debt starts a 7-year cycle of that negative mark over again. This can negatively impact your score.
- According to MSN Money, collection accounts are often reported with a zero balance. Thus, paying off three collection accounts with a zero balance will not have any positive or negative impact on your credit score.
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