Paying Off Old Medical Collections

by Dawn

I have a goal to buy a house within the next year. Almost everything on my credit report is a medical collection. Is is smart to pay off these collections? I keep getting advice from other people saying that medical collections do not matter but I think that they do. Any help would be appreciated. Thank you.

Reply from


You are correct in your understanding that medical collection accounts do matter when you try to get a loan. For purposes of the credit score, they are no different than any other type of collection accounts.

Unfortunately, however, paying off a collection account won't necessarily improve your credit scores. A paid collection account is also negative. However, payment collection accounts could keep you from being sued. in addition, a mortgage lender may require you to pay off the collection accounts before your loan can close.

It would be a good idea for you to talk with a mortgage loan officer now to find out what you need to do to be in the best position possible to get a loan when you are ready for one. You can contact a local mortgage professional or you can visit to give a free analysis of your situation.

We hope this helps!

Comments for Paying Off Old Medical Collections

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May 09, 2011
Originator to the post
by: Dawn

Thank you for the answer and I have already contacted a mortgage professional and they have told me they do matter and when you pay off a medical collection you will see and immediate drop in your score but in time it will go back up. I hope that answer helps anyone who is looking for the same answer.

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