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I have a BofA charge off that i recently payed and they finally (after 3 months) changed the status of the account from "Charge Off" to "Paid In Settlement".
I just want to know if this will improve my credit (it is my only baddie) since it is no longer showing up as a charge off and instead is showing up as Paid In Settlement, the charge off was originally for $700 and was still reporting that balance until today when the account was updated to paid with a 0 balance.
@Denny33142 wrote:I have a BofA charge off that i recently payed and they finally (after 3 months) changed the status of the account from "Charge Off" to "Paid In Settlement".
I just want to know if this will improve my credit (it is my only baddie) since it is no longer showing up as a charge off and instead is showing up as Paid In Settlement, the charge off was originally for $700 and was still reporting that balance until today when the account was updated to paid with a 0 balance.
For scoring purposes a notation of "settled" is the same as a CO. But having paid this might help you if it lowered your utilization (do you know if it did?) and it will look better if someone manually reviews your file.
From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782
"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".
Update of the current status only reflects its status now, is not a reflection of any prior derogs or delinquencies reported on the account.
Once an account is paid, the current status must be updated to paid, thus reflecting the absence of a balance due. It does not overwrite the prior reporting of the delinquency, or in this case, their action of having previously charged-off the debt. That is retained in both your payment history profile, and in your payment rating fields of your CR.
Those are all retained, and continue to affect credit scoring.
FICO does not score payment status. Paid in full, paid for less, or unpaid all count the same.
Myfico report card is telling me that my best course of action is to pay down my card balances because it is too high (i also got denied for a credit card because of high utilization), i only have 2 credit cards and both of them have less than 20% utilization meaning that it must have been the charge off reporting a balance that was killing me (it was reporting a 700 balance on a 500CL).
I am guessing the only way to find out is by ordering my score again.
@Denny33142 wrote:Myfico report card is telling me that my best course of action is to pay down my card balances because it is too high (i also got denied for a credit card because of high utilization), i only have 2 credit cards and both of them have less than 20% utilization meaning that it must have been the charge off reporting a balance that was killing me (it was reporting a 700 balance on a 500CL).
I am guessing the only way to find out is by ordering my score again.
Oh goodness. It was scoring you as not only maxed out but over the limit.
I would expect a nice increase but as we say around here YMMV (Your Mileage May Vary). Please let us know how your scores are affected by this.
From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782
"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".