Paid off charge-off increase score? UPDATE!!

[Tooliebell]

Updated information:  I had one charge off report a my payment and received a score update, it was a 5 point increase.  Not a biggie but when you consider I have a few of them, I am hoping it will add up to a significant change!

I was able to make settlements on all of my cc chargeoffs.  Most of them were settled for 80 or 90% of the balance.  Once the OC or CA reports the payment, which would show the wording "payment after chargeoff" will my score go up at all?  Right now according to my LO it is 493!  We had a home equity line of credit that came due and luckily our lender is willing to rewrite it for us.  We ran into a rough patch when DH lost his job, defaulted on most of our credit cards, and fell behind on our installment, mortgage loans for about 7 months.  But since January of this year we have been able to make all payments on time and save up the money to pay off all the charge offs.  Since we will soon have 12 months current payment history on all accounts, i would like to see the score go up, and I am kinda surprised mine is so low. 

If you have experienced a movement in your score since you made payments on charge offs or settled in full, would you please respond.  Our payment history was perfect before dh's layoff, hard to believe just one rough patch can screw up so much. 

If I can't expect to see an increase in my score once all the OCs and CA report the payments, how can I get my score up there.  Is there a magical increase after 12 months on time payments? 

[alleycat1975]

I've been paying off things left and right and have even had about 13 accounts delete..  and my score went down not up lol.. 

BUT--  I have this stupid LOC from a vacation network scam membership fee reporting as Revolving credit  so as far as FICO is concerned I may as well have a maxed credit card..    so thats "keeping me down"

What is your credit utilization showing?  if you know.. 

[Anonymous]

i paid off almost 20k in old credit cards and my score went up 11 points. 

[MarineVietVet]

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@Anonymous wrote:

i paid off almost 20k in old credit cards and my score went up 11 points. 

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I would just be glad I was $20,000 less in CC debt.

IMO a score never comes before being debt free.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work

[Anonymous]

cash is king. im ready to just say screw credit reports. i have my house and cars and 1 good credit card. all debts paid expcept for 4 collections on medical bills that are under $100 each. Im not paying them unless they get deleted because i would have paid them if I'd have known about them. my equifax score is only 536. perfect payment history for almost 12 months.

[alleycat1975]

Cash is king for sure..   alas, I don't have a house.. thats my end goal and the reason i'm diligently working on my reports.    Here's my priority list:    House....    everything else..   lol..

[Anonymous]

do yourself a favor. figure out how much house you can afford, then divide that amount by 4. Get it paid off in 5 years. save yourself a lifetime of bvllchit interest payments. ive paid 200k in payments over the last 7 years and my principle has dropped 15k. my interest rate is 6.6

[Shane1]

Settled is the same as charged off for scoring purposes. Unless you negotiate a pay for delete, paying merely stops collection activity. It does not typically help your credit report.

[RobertEG]

This in NOT my personal opinion, but only how I think the FICO risk analysis views it.

You had monthly delinquencies with the OC that remained unpaid past due date

They had to take the unpaid debt to a charge-off.  Then on one or more accunts, to referral to collection.

That is there risk analysis of your potential to timely and fully pay.

Later payment of the debt does not erase, in a FICO risk analysis of your likelihood of going into future default ,the fact that you later pay.

So later payment of overdue debt does not score into their risk analysis.

I know that whole analysis has no factors of conditions that led to the strife in late payments were missed and msde,,the strugggles to recover from them, and in many cases, extraordinary sacrifices made to do the right thing,and recover.  But paying a CO, or CA does not help FICO score. It is just the original sin that matters

[Tooliebell]

Updated information in OP