Consumers who’ve had a collection hit their credit report might be wondering if they should pay it off or hold off. Micah Curtis shares the right move to make — and the answer is not what you might think.

In a world where credit impacts so much of our day-to-day life, a common question that we should all know the answer to is: To pay or not to pay? Because let’s face it — life happens. If you’re one of the many, many Americans who’s had a collection hit your credit report, you need to know what action to take so you can move forward and upward.

So, should you pay a collection? Even though agents should always advise clients to check in with their lenders, it’s good to be armed with the right information needed to protect your clients.

Tune in as Rick Guerrero sits down with Micah Curtis, regional director at Home Loans Assist to explain why it’s most likely not advantageous to pay a collection. Here are a few of the key takeaways:

  • “When I teach credit, I tell people: Take common sense and throw it out the window because common sense does not apply,” Curtis said.
  • On a credit report, there’s an acronym consumers need to know about — and that’s DLA. DLA stands for the Date of Last Activity.
  • If you have a years-old collection, Curtis said, it’ll do less damage the older it gets. However, once you satisfy the collection and bring it down to a zero-dollar balance, the misconception is that the collection goes away. In reality, it doesn’t.
  • When you pay a collection, this updates the DLA so it looks current on the credit report. “Now you’ve satisfied a collection that’s going to stay on the report another seven years from the date of satisfaction,” she said.
  • There are some occasions where it is advantageous to pay it off, like a credit card that has defaulted and has become a charge-off.

Rick Guerrero is the Director of Branch Sales and Strategic Partnerships at US Mortgage Corp. You can follow him on Facebook or connect with him on LinkedIn.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription