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The debate between paying off collections vs letting them age off credit reports
I was talking to my buddy Dave the other day, he works at a credit union. He swears paying off old collections is pointless because the damage is already done, but my neighbor just settled one for $500 less than owed and his score jumped 40 points. I've always thought paying stuff off is the right move, but Dave's logic made me question if I've been wasting money all these years. Which side is actually better for rebuilding credit - paying it off or just waiting it out?
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margareto261mo ago
My buddy Dave actually told me the same thing a few years back and I argued with him about it. Then I let a $600 medical bill sit on my report for 6 years and my score was stuck at 620 the whole time. Meanwhile I paid off a $300 cable bill from 2015 and my score jumped 35 points within two months. I used to think paying old debts was just throwing money away but now I'm convinced it's worth it even just to stop the damn thing from showing as active.
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tarabell1mo ago
Huh, I mean maybe it's just me but I don't think paying old stuff always helps that much.
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