Question

Does paying off collections improve your credit score?

If I have debts that have been sold to collection agencies and I pay them off how long does it take for my credit score to show the collection agencies have been paid and to improve my credit score?

Answer 1

Yes paying off debt that has been sent to collections is a good thing and will help improve your credit score.

A good credit score is a must today. A good credit score helps you get loans, home loans, car loans, and you will usually get a lower interest rate with a good credit score.

Once you pay off the debt collector it can take a month or 2 before it's reported on your credit rating.