Credit and car payments will be updated with the bureaus. This will boost up your credit ratings within 46 to 60 days. However, the collections will still stay in your file even after the account is paid off. It will show up as "Paid collections". Although, the item is a derogatory remark in the file, but it will improve your credit slightly. You may negotiate with the collector to remove their remark completely. If this happens, your credit will give the best effect.