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Does paying off old charge off help credit score?

New Member

Does paying off old charge off help credit score?

Does paying off old charged off accounts help a credit score?

Message 1 of 5
4 REPLIES
Community Leader
Super Contributor

Re: Does paying off old charge off help credit score?

In many instances it can. If the OC is reporting a CO and it was revolving credit account, then that unpaid balance gets used in the UTI% portion of scoring.  Paying it off effectively reduces your UTI. The second way it can improve scores is if the OC is updating each month. Paying it stops the updating and allows the item to "age", which helps your scores, though not immediately like UTI.

Most Recent FICO 8 Scores EX601/TU580/EQ589 12/08/2017 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
Message 2 of 5
New Member

Re: Does paying off old charge off help credit score?

UTI? OC? CO?  Sorry I am new Smiley Very Happy

Message 3 of 5
Moderator

Re: Does paying off old charge off help credit score?


katie011 wrote:

UTI? OC? CO?  Sorry I am new Smiley Very Happy


Utl is utilization

 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Guide-To-Common-Abbreviations/m-p/224988?jump...

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne
Message 4 of 5
Regular Contributor

Re: Does paying off old charge off help credit score?


katie011 wrote:

UTI? OC? CO?  Sorry I am new Smiley Very Happy


Urinary Tract Infection , Orange County, Colorado

 

UTI - Utilization

OC - Original Credit

CO - Charge Off

 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Guide-To-Common-Abbreviations/td-p/224988

 

 

on another note this is very good information because I too have a charge off that is affecting my UTI

FICO 8 Scores as of 02/05/2017:
EQ 632 | TU 643 | EX 644
Open Revolving Credit lines and Limits:
Discover IT $1,000 | Walmart Store Card $3,500 | Amazon Prime Store Card $3,000 | BuyPower Card $500 | Credit One $1,050 | Cap1 QS1 $1,100 | Cap1 Platinum Secured $501 | Amex Everyday $1,000 | Amex Gold NPSL | HSN $1,800 | Overstock $1,550 | Kohls $700 | FingerHut $2,150
Message 5 of 5