I have 4 items in collections according to my credit reports - 2 medical bills totaling $1700, and unpaid traffic ticket for $200, and an old utility bill for $185.
I have one credit card that I've had about 8 months and a decent income now. My credit score is in the low 600's.
Trying to fix things up but I read on one website that paying off some of these old debts can actually hurt my score, and won't help it at all!
Moreover, Fair Isaac Corporation, the company that provides the credit scoring formulas behind the FICO Score that practically every lender uses to qualify new credit applications, doesn’t award a single point for paying off a collection or charged off account. Rather, fair or not, it’s the mere presence of such an account, without regard to its ultimate payment status, that lowers the credit score.
Is this correct?