Does paying off all my bills repair my credit?

That assumption would be logical but IS NOT true. Then again, the credit reporting system just does not work according to logic.

Paying an item that is on your credit report extends the time that the item will remain on your report. The seven (7) year clock starts all over again. Ironically, a paid in full negative item is not generally looked at any more favorably than an unpaid negative listing. In most cases, without professional help, you will not get much further by paying the old debt. (IN FACT, YOU ARE LIKELY TO MAKE IT WORSE)