cleaning up old debt

i am currently trying to clean up my debt and improve my credit score. 5 years ago i was planning to file bankruptcy but decided against it. now i have the old debt to pay off. i have one credit card to pay off. i have read if i start paying on the old accounts it will lower my score. if i get this paid off will it increase my score and improve my credit?

chrisp

Can you clarify what type of old debt you are talking about? A collection account?

i have a credit card account that did go into collections and a few smaller accounts like an old phone bill all of which were turned over to collections several years ago

It used to be that paying on a collection account would lower your score. That's because it would update the account to make it look more recent. FICO says that's not the case anymore.

Whether you settle it or pay it in full makes no difference as far as your score is concerned. In fact, paying it will not help your credit unless you can negotiate to have it removed completely from your report. That doesn't mean you shouldn't pay it. I do encourage you to pay your debts so you can put your past behind you. I just don't want you to be disappointed if your scores don't go up once those accounts are paid off.