Negotiating with collection agencies will hurt your credit. Unfortunately, it will hurt your score by updating the Date of Last Activity (or DOLA). Paying will re-start the clock on the Statute of Limitations (or SOL). This is the period of time the collector has to take legal action against you.
If you’re wondering why anyone would ever settle with collection agencies when it doesn't help your credit, you're right--there's not always a good reason to. And the moral issue of paying your debts back is questionable since the original creditor will no longer accept your payment.
Get Your Collections Removed Professionally
In some cases, we recommend speaking with a Credit Repair professional to analyze your credit report. It's so much less stress, hassle, and time to let professionals identify the reasons for your score drop.
If you're looking for a reputable company to increase your credit score, we recommend Credit Glory. Call them on (866-529-4304) or setup a consultation with them. They also happen to have incredible customer service.