I have some old medical bills, phone bills, cable bills on my credit report. I want to pay off these bills , but I have been told that paying old debt will lower my credit score?? any advice should I pay these old debts (THESE are not credit card bills they are medical and other misc items.
The Answer : It depends on how you negotiate the rating once it's paid. If you just simply pay them off, it will not help your score that much because the collection account will still remain on your report although it will be closed. The only way to have a positive effect on your score woud be to neogiate to have them change the status from a collection account to "paid as agreed" or negotiate a payment to get it completely removed altogether as if the account never happened. I've posted some links on how to negotiate with collectors to get a favorable rating on your report after you pay off your debts.
http://www.creditinfocenter.com/debt/set...
http://www.creditinfocenter.com/debt/neg...
http://www.creditinfocenter.com/debt/Can...
http://www.creditinfocenter.com/debt/Act...
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