Q:
How long will it take for my credit score to come back up after paying 17 bad debts off my report? And why did my score drop much lower than go up after paying the debts off?
Shannon
Marietta, GA
A:
Hi Shannon,
Typically when you pay off debts your credit score will increase between 50 and 75 points with each credit bureau. You want to make sure that the collections you are paying off report to all 3 credit bureaus. The reason for this is you want the paid status to affect all three bureaus. I have personally found the reason for this is the amount owed status changes to a $0 balance with the reporting creditor. IN some cases your credit score will drop if you pay off very old collections. I typically recommend paying off only collections from the last 2 years. Nether less paying off collections will increase your credit score in the long term.
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