I have recently started to pay down some of my old debts, but have become somewhat skeptical of how effective this tactic is in regards to improving my credit score. I have heard a wide variety of things from different people.
My question is, if the accounts are already in collections and they are old, should they still be paid off or do they fall off in 7-10 years? I have also heard that paying off these old debts creates a new activation date for the debt and therefore reduces your score because it refreshes it’s existence. Is this true? What should I do with old debts that have been in collections?
Thanks so much for your help!
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.Should I Bother to Payoff Old Debt to Improve My Credit Score? - Kristen by Steve Rhode