The EXACT REASON Paying Collections Doesn't Help Your FICO Scores! | KreditMd.com #shorts

You can find Credit gurus all over the Internet telling you not to pay collections. But in this video I'm going to tell you EXACTLY why paying collections will never ever help your credit score increase. That is, unless you get what's called a pay for deletion agreement. You see, everything on your credit score reports as a code these codes are typically one letter and one number. Once you watch this video you will understand exactly how collections affect the credit score algorithm.

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I'm going to teach you the Kredit game! So if you're having trouble understanding credit...Don't Worry...As Usual...I Gotchu! C'mon! 😉 IYKYK

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[ismaelcruz]

BullCrap! I paid off all my credit report collections and my Credit went all the way to a 700. My advice is to pay all debt off! You’ll look great. Debt sucks

[maggiemoo]

Good advice.... Use to be debt collector. Most ppl dnt know that if they settle on an acct. at end of year they get 1099 from IRS. Yup they look at the unpaid balance as earned income. NEVER SETTLE ON A DEBT!

[drgreenthumb]

Damn James earl Jones giving credit advice

[teefinds]

I agree they don’t raise your credit score if you pay off collections on your account but I set up a payment settlement account and made sure they agreed to delete and remove the collections which they did because if you don’t pay they still affect you either way from qualifying for a loan but in my opinion I rather have 0 collections on my account

[kashfortheking]

I always tried to get them to take less. If they didn’t budge, I didn’t either. It was going to be 7 years either way. Good info here 👍🏾👍🏾

[jacquelinebrannon]

I agree don't pay collections 5 years in Florida for credit card debt I'm doing a standoff

[seungyeonlee]

you know what ? your voice is the best I have ever heard in my life.. amazing voice!

[CamRowdy]

Hummm, I just paid off a collection and my number increased by 21 points.... So I'm not sure what you mean.??

[wilfordify]

I thought you pay a collection but insist on deletion?

[Alovelyme]

But can a collections account keep you from qualifying for a home loan? If so, then what?

[actright]

U said when it's removed pay it in another video and now u say don't pay collection... I'm confused 🤔

[thebigmann]

Your voice reminds me of Chris Hogan. I miss is show from Dave Ramsey solutions

[Jbeavers-njyg]

Is it true that now medical collections paid off are removed?

[summerd]

Yeah, but can’t those creditors cause a ripple affect with you applying for new credit? Synchrony Bank is the holder for many entities, so if you mess up with one of them, doesn’t that tie you to the obligation not being met?🤷🏽‍♀️

[yogiegemini]

Since paying the collection does not increase your credit score. Then why do banks force you to pay the collection in order to get the mortgage?
It's hard enough to say for down payment and closing cost.

[cdavis]

I don't agree at all. While that is technically true you should be paying off your collections with the stipulation in writing that the collection will be removed once its paid for. Removing the collection from your record WILL increase your score. Waiting 7 years for collections to fall off is a horrible idea.

[msgreen]

I have a "desperate" question ⁉️⁉️❓I owe 3k to an apartment complex l left in June 2022. I was waiting on rental assistance. I wasn't evicted but l left owing, the 3k has been placed with a collection agency. If l do not pay them how will l qualify for an apartment? They check if you left owing rent, right?

[codychavarria]

Whats wrong with doing the right thing and pay back what you borrowed???

[matthewhenderson]

One pays a “collection” because one is morally obligated to pay the debt they owe. Not merely because of some potential credit score improvement.

[faithgolden]

I have a medical bill that just went into collection status. But I made an installment, now it’s no longer in collections. Are you saying I should not have paid it at all? I’m confused