Did you know that paying off a collection account will have no effect on your credit score? It is common misconception that paying off a collection account will help your credit score. It is the event of having a collection account that is damaging your credit report → not whether or not the collection account has a balance owed. To get a significant boost in your score the goal is to get the collection account deleted.

First tip: If you are settling a collection account, you may well get better results by negotiating at the end of the month. Many collection agencies work on a quota system. The office (assuming a larger collection agency) who handles your account has a quota every month to collect. If you negotiate with them at the end of the month, often they will be more anxious to settle if they have not yet hit their monthly collection quota!