How much would paying off my only 2 accounts in collections help my "very poor" 540 credit score. I have no credit cards or car payments.?

It will help a little, but probably not nearly as much as you'd like. The accounts in collections will show as "Paid", but it won't bring your score up much. That they show as paid may help, but if the goal is a higher credit score, you will need to be building positive credit to get there. The majority of your score number is based off the last two or so years of reporting, so if you haven't been building positive credit in the last couple years, you won't have a great score.

If your ultimate goal is to get an apartment without a cosigner, a better bet might be to save up and offer to pay either a larger security deposit or multiple months of rent up front.

You should obtain a copy of your credit report.See if the collections appear on your credit report. If they no longer appear on your credit report they are not hindering you in any way.

Most states have a law where collections must be removed from your credit report after a 2-4 year period of time have elapsed. You would want to Google unsecured debt followed by the state in which you reside. You will find out the number of years this collection account would have to be reported on your credit report.

If the time based on your state law have lapsed, you are no longer legally required to pay the collection. Also you may request the collection agency to stop calling you. Your debt has been declared noncollectable by your state.

If the time frame have lapse, don't make a call to pay this collection. If you do the collection will now reappear on your credit report for agreeing to pay the collection.

You may negotiate with the collection agency about the amount you are willing to pay. They would just like to get something.

Make sure if you agree to a lower amount you request a contract or an invoice indicating the amount you pay would pay the account in full.

The other thing you would want the collection agency to agree to .When they report the collection as paid to the credit bureaus you would want them to report the collection as PAID as oppose to PAID COLLECTION.

Make sure this is included in your agreement and you are sent a copy of this agreement before you send any money.

Having PAID on your credit report would be better to increase your credit score as oppose to PAID COLLECTION.

You may apply for a credit card and be issued one with the current credit scores you have. You will be limited as to the amount you are able to use and your interest rate would be a bit high, but you need this type of financial instrument to be considered credit worthy. So apply and get the best credit card with the lowest interest rate you are able to be approved for.

The best way to obtain a credit card is to join a local credit union. Immediately after joining the credit union, you may sit down with a credit card specialist and be approved for a credit a card. Your interest rate would normally be less than 10% no matter your credit score.

It would cost you $25.00 to join your local credit union. This amount would be the start of your savings which is required by your credit union.

In joining the credit union you are able to get a debit card, have your check directly deposited to your new account.

The main thing is you have a checking account as well as a savings account to start putting money aside for potential emergencies. This savings would protect your credit and credit score if you are laid off or there is an emergency.

There are other benefits in joining a credit union.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

Can't give you a definite number, but it definitely would improve your score. You should pay them off. A paid collection could be explained by your having an unexpected medical crisis or job loss/income curtailment, but that you met your obligation as soon as you were able. Looks a lot better to someone reviewing the report.

it will help, but it will take months for your score to change. however, not having the collections will make you look better.

pay them off NOW, even if you don't get the apartment. Only time helps credit reports.

Paying them off will not automatically increase your score. Now you have to start over and prove you can make payments on time. It could take a couple of years to get a decent credit score.

Paying off bad debt keeps your score from getting worse but the only way to bring it UP is to pay things on time.

got to your bank....get a secured credit card....not a lot of help if you are broke....pay it off USING a credit card...can't help but laugh..and the idiot that said it went to collections because it was an unexpected medical crises...yeah, go with that totally believable....get a credit card by any means and make regular ontime payments

It would help, there isn't a perfect formula to predict how much.