Reply
New Visitor
Posts: 1
Registered: ‎03-19-2007
0

Old credit balances

I have had my troubled youth, and trying to get back on track.  I have some old outstanding balances that were never paid totalling $1750.  These are from 2000 / 2002.  I understand that paying them off isn't going to remove them from my score.  These will be dropping off this year, and 2009 whether they are paid or not.  I live in CA, and from what I have heard there is a statute of limitations that a debtor has that they can take legal action to collect a debt.
 
So the big question, should I pay these, or let them lie and wait.
Regular Contributor
Posts: 252
Registered: ‎03-16-2007
0

It's really up to you. However, if you have a credit card...

It's really up to you.

However, if you have a credit card with a $1750 balance -- and it hasn't been sold, then it still counts on your total utilization. The limit is effectively zero, so your utilization is infinite.

Let's say you also had a credit card with a limit of $2000 and a balance of zero. On that card, you'd have a utilization of 0%.

However, your overall utilization = ($1750 + $0) / ($0 + $2000) = 87.5%

In other words, even though paying off an amount owing doesn't generally help increase your score, paying off charged off revolving accounts may help.
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.