The credit score associated with your credit report is determined by use of a very complex algorithm applying weighted values to many data factors. Very important is length of your credit history, the number and types of accounts you have on record, how much is owed compared to your total credit line, and how timely payments have been made.
Delinquency, collection activity, and charged off items do a great deal of damage to your credit report and may make credit repair a necessity. When these past dues are paid, or brought current, this pay off is usually considered to be recent activity.
Do not make applications for a mortgage or other new credit until many months after making payoffs.
Additional information is located on these pages:
Do I Still Need To Pay My Bills? – You are still responsible for paying your bills even if you get a negative credit item removed.
Does paying my bills restore my credit? – Paying bills will help improve your credit score.
Equifax Beacon Validation Odds Summary – Table predicts the likelihood that creditor will go more than 90 overdue on a payment based on their credit score.