09-06-2010 03:58 PM
My Fico score Equifax 737, Transunion 736, Fako Experian 730
My credit problem start in 2008 when my two account went to charge-off status, Bank of America $5,800 balance, Citi Personal Loan $5,400 balance, both of those account was charge-off in 2008( July) and now we have August 2010 and it still reflect as a " charge-off " with balance
I did settle both account last month for 26% of the total balance owned with was pretty good settlement offer and awaiting for credit bureau update
My Fico say that my Utlization is high because of those 2 account charge-off and some student loan that I still carry, Once account reflect status as " Paid for less than full amount" from Bank of America will this increase my Fico score?
Once Citi personal loan credit bureau update as " Settle" will this increase my fico score? what score could I get on estimate?
Both account that was charge-off in 2008 in in my utlization ratio
Once account is settle and is reported to credit bureau as a settle, is there any way I can STOP credit card company to report " Charge-off" status on montly basis ( credit card company reporting charge-off since July 2008 each and every month)
09-06-2010 09:07 PM
Your scores are pretty good for having a couple of recent COs reporting. Congrats!
MyFICO's util calculation listed on pages 2 or 3 of your FICO report only factors in CCs and not installment accounts, and installment util, counted seperately, is such a small and tiny part of FICO scoring. So, the main impact would be from the BofA. Score change is always a YMMV thing. If it reported a balance, then it likely factored into your utilization. Once it is paid and shows $0, then your utilization will change and that can impact your score. Some have reported a loss if that CC, even as a CO, helped utilization. Most report gains if that CC hurt util. Mix of credit is also another factor. So, if you have other CCs, then it's reporting of $0 won't impact you any. The last bit to keep an eye on is the change in reporting. If it didn't update in a long time, then you could see a score hit as it updates to an August or September 2010 date. If it has been updating monthly, then there's no worries there. Finally, it doesn't matter if it reports $0 or $10k (aside from util), or "settled" or "paid for less than full" or "charged-off:", the impact to your FICO score is the same and are equally bad. Per a score guess, there's too many variables to guess. Your score could go up or down, but YMMV. If it really hurt your util, as you pointed out, then you'd likely see a nice increase. With regards to the Citi, the same as the above applies, minus the utilization.
Once paid, they'll likely stop reporting monthly and will report a $0 balance.
09-06-2010 10:51 PM
Answer to the charge-off question is, regrettably, no. You have no credit report beef of reporting of the CO by the OC.
When you pay the debt, the basic and currentl account status must be updated to paid, account closed, and no debt owed.
But payment does not erase the prior reporting ot the charge-off.
The CO will legitimately remain in your CR for 7 years, plus an optional six-months, from the date of the DOFD on the OC account.
The OC can legitimately continue to report the prior CO forever. It is up to the CRA to then determine how long this reporting can remain in any CR they issue..
It is not an OC reporting issue, it is a CRA issue of how long they can include it in any CR they issue, under the limitations of FCRA 605(a) and (c).
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