Why pay off debt if it doesn’t fix my credit score?

[Eduardo]

I’m trying to fix my credit score and I’ve been reading a lot about it lately, and from what I’ve gathered I understand that even if I pay my debts – it won’t make them go away off my credit report.

So if a collector doesn’t remove my debt from the report after it’s been paid, then what would be the purpose of paying it off?

[Tracy Winters]

Re: Why pay off debt if it doesn’t fix my credit score

I can think of many reasons why you SHOULD pay:

First, there is the moral issue. If you can repay a debt that you promised and you choose not to – that’s stealing.

Second, paying your debts will stop collectors from calling and harassing you.

Third, Paying off your debts will prevent collectors from suing you, getting a judgment, and garnishing your wages, attaching bank accounts, and placing liens on property.

Forth, from a practical point of view it’s much better to show a debt paid late rather than an open collection item. Remember that most lenders and creditors actually check your credit report, and they will have a more favorable attitude toward late-but-paid debts than to unpaid debts.

[Author]

Posts