Hot take: Paying off collections doesn't boost your score like everyone claims

I settled a $500 collection from 2018 back in March. Everyone on this sub said my score would jump 40 points. My score went up 8 points. That's it. Meanwhile a friend of mine left a $200 medical bill unpaid and his score went up 15 points after it fell off naturally. I think paying collections is overrated unless you're applying for a mortgage next month. Has anyone else seen tiny gains after paying off old debts?

3 comments

3 Comments

sanchez.julia9d ago

$500 collection settled in March should have hit your score harder than 8 points though.

blair9909d ago

Huh, is that really true though? I mean, sometimes older collections don't hit as hard, especially if your file is thick with good history. Maybe it's just me but I've seen people bounce back from collections way faster than you'd expect.

white.keith9d ago

Paid a $400 one myself, only dropped 12pts. Depends on the scoring model.