Doesn’t paying off negative accounts repair my credit?
Of course, paying off the negative balances owed to creditors is always a step closer toward better credit. Unfortunately, in the short term, the credit reporting system utilized by each of the major credit reporting agencies do not recognize your efforts. When you pay an old debt, the negative credit listing (judgment, tax lien, charge off, collection account, etc.) doesn’t disappear. Instead, it usually reactivates the 7-year reporting “clock”, keeping that negative account on your credit report for an additional seven (7) years & temporarily lowers your credit scores.
