Ask Stacy — Will Paying Old Unpaid Debts Improve My Credit Score? | Money Talks News
Stacy Johnson • April 28, 2017
Here’s how to improve your credit score if you have debt in collections. Paying it off may or may not be the answer.
Your credit history is important to your overall financial health for at least three reasons.
First and foremost, a bad score means higher rates when you borrow. Second, because a bad credit history can also impact other expenses, like your car insurance. And finally, lousy credit could also impact your ability to find work.
Because unpaid bills will devastate your credit score, logic would suggest that paying them off would send it in the opposite direction. But not all is logical when it comes to credit scores.