If I pay off a debt, will it improve my credit score?

Paying off a debt that is in collections may not immediately improve your score. As noted above, collection accounts typically remain on a credit report for seven years before being removed. The negative effects may lessen over time however. While it may not immediately affect your credit score, it will likely show up with an annotation that the debt was “paid in full” allowing future lenders to have more confidence in your ability to pay back what you owe.