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

Click here to add your own comments

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.

Click here to add your own comments

Return to Medical Debt Collection Questions.

Learn how debt collection laws can help you!
This website does not provide legal advice.
All information is for educational purposes only.
Copyright 2007 - 2021 by Mary Reed and Gerri Detweiler.
All rights reserved..
Read our Privacy Policy here. Do not sell my information.