To Pay or Not to Pay? Part 1: Collections
It’s probably one of the most common credit questions I get:
“Heather, I have this collection from 2020—should I pay it to help my score?”
If you’ve wondered the same, you’re definitely not alone. But here’s the truth: sometimes paying a collection helps your score... and sometimes, it can actually do more harm than good.
At Debts in a Row LLC, I believe in empowering you with real answers. Not scare tactics. Not guesswork. Just honest, tailored advice that helps you get your credit (and your confidence) back on track.
Since this is such a big topic, I’m breaking it down into a 3-part series:
Part 1: Collections
Part 2: Charge-Offs
Part 3: One-Offs
Let’s start with collections—and when paying them might help... or hurt.
💡 What Is a Collection, Exactly?
When you don’t pay a bill for 120–180+ days, it often gets handed off to a collection agency. This is known as a collection account.
Common types of collections:
Medical bills
Credit card balances
Utility or cell phone bills
Apartment leases
Loans
👉 Important: Collections and charge-offs are not the same thing. They affect your credit differently—and I’ll explain charge-offs in the next post.
✅ When Paying a Collection Might Help
1. Medical Collections
Thanks to the Medical Debt Relief Act of 2021, once you pay or settle a qualifying medical debt, it can be removed from your credit report entirely.
Even if lenders don’t count this type of debt against you when applying for a mortgage, it still drags down your score like any other collection. Removing it = good news.
My advice: If it’s medical, and you have the means to resolve it—do it. It’s one of the few cases where you’ll likely see a positive result.
2. Pay-for-Delete Opportunities
Some (not all) collection agencies offer what's called a pay-for-delete. This means if you pay the debt in full or settle it, they’ll delete it from your credit report.
⚠️ But don’t assume! You MUST get a written agreement before making a payment. If they won’t put it in writing, they probably won’t delete it.
At Debts in a Row, I help clients figure out which accounts have the highest likelihood of deletion—so your money actually works for you, not against you.
3. Government Collections
These include:
Defaulted student loans
Back taxes (IRS)
Child support
While paying these may not directly improve your credit score, they’re often required before you can qualify for a mortgage or other financing.
So even if the score doesn’t budge—it’s a step forward.
⚠️ When Paying a Collection Might Hurt
This is where most people get blindsided.
Even with good intentions, paying a collection can actually drop your score if you’re not careful.
Here’s why:
Updating the Date of Last Activity (DLA): When you pay a collection, the agency updates the account. This refreshes the DLA—making the collection appear newer than before.
Scoring algorithms penalize recent negative activity more heavily than older ones.
The 7-year clock resets: Some payments can restart the countdown for how long the collection stays on your report. What should’ve fallen off soon could now hang around until 2032.
If the collection agency won’t delete it, and the account is already several years old, it may be smarter to let it age off—especially if your goal is to raise your score in the short term.
🎯 So… Should You Pay That Collection?
There’s no one-size-fits-all answer.
That’s why I started Debts in a Row LLC—to guide you through the gray areas with clarity and strategy.
Here’s how I help:
I evaluate the age, balance, and type of debt
I help you prioritize which items to address and which to leave alone
I walk with you step-by-step, so you’re not navigating this alone
You’ve probably already been asked this question by a friend, client, or even wondered it yourself. Now you can confidently answer:
“It depends—let’s look at it the smart way.”
If you're unsure what your next move should be, let’s talk.
Together, we’ll get your debts in a row and your credit on track.
📞 270-935-1675
📧 debtsinarowllc@gmail.com
🌐 DebtsInARowLLC.com
Stay tuned for Part 2: Charge-Offs—what they are and how to handle them the right way.
Want a personalized debt review? Contact me here and let’s get you the clarity you deserve.
– Heather Howe
Founder, Debts in a Row LLC
Helping you restore what debt stole—one decision at a time.
