#3: Paying off a negative record will get it removed from your credit report Not quite. Negative records such as collection accounts, late payments and bankruptcies can stay on your credit report for 7-10 yearseven if you pay it off. But let me point out that paying off your debts is still a smart move because they will be marked as "paid" on your credit report. Lenders may look more favorably on your report if your debts are paid. Of course, the big improvement will happen when the negative record expires.