What FICO is saying here is that paying off a debt in collections won’t improve your score.
In short, paying debts in collection won’t influence your credit score.
It may, however, influence a lender who looks beyond your score to its source, which is your credit history.
How much will my credit score increase if I pay off collections?
Unfortunately, simply paying a collection account without getting it removed often won’t improve your credit scores. With few exceptions, as long as a collection account is listed on your credit reports, it’ll have a negative impact on your credit scores.
Does paying off collections improve credit score 2019?
Reporting Delinquent Debts
Does paying off collections improve bad credit, the answer is no. Not by itself. Simply just paying off your past debts is not likely to help your credit in the short term. It may help the long-term effects, but it isn’t instant.
How do I get a paid collection off my credit report?
Pay for Delete
Send the collector a letter stating your interest in paying the account. Offer to make payment if the collector agrees to remove the entry from your credit report. If the debt collector agrees, ask for a signed copy of the letter to you to seal the agreement. (Sample Pay for Delete Letter.)
Does paying off a closed account help credit score?
Once a loan is paid in full and the account is closed, you lose the benefit of continuing to make regular on-time payments that have a positive impact on your credit score, but the payment history remains. Regardless of whether it’s a loan or credit card, a closed account can still affect your score.