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Does paying off old charge off help credit score?

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

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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.

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

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

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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...

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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

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