There are a couple of reasons why you should pay off a collection account:
Although
credit scores don’t heavily differentiate between paid and unpaid
collections, lenders will most likely favor a paid collection over an
unpaid one.
If you don’t pay the collection, it’s possible that
it will be sold off to another collection agency. This can cause one
collection to spiral into numerous collections on your credit reports
and hurt your credit scores even further.
Collectors are suing
to collect their funds more than ever. The more you owe, the more
likely the collection company will pursue the debt into court to compel
you to pay. If they decide to sue you, they could garnish your wages
(if it’s legal in your state) or file a judgment against you. Needless
to say, a judgment will damage your credit record for another seven
years.
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