Pay It Off - KILL MY SCORE?

[Anonymous]

Hi everyone, Im hoping that someone can help me understand an issue that I am having. For the last three years I have been rebuilding my credit. Finally my scores are in the mid to upper 600's across the board and I should break into the 700's before December 13. I have learned a truck load about scores, reporting, FAKO vs. FICO and son on. But I don't understand what's going on now. Most of the credit score sites offer what they call "What If" Simulations. I have run about 5 or 6 of these from different sites. I have 8 Cards; 5 Store Cards and Three Majors all in good standing and never late. I have 5 old "baddies and charge off's" from about 4 years ago. In order to give my score a good kick up; I was entertaining the thought of either settling or paying in full the 5 old baddies. Here's the thing, can anyone tell me why paying them looks like it will KILL all three of my scores. I don't understand. Right now I have a 666 with EQ and after the what if simulation, my EQ dropped to 622. Can anyone tell me why? I am seriously considering just waiting it out and letting them drop off and not paying.

[guiness56]

Have those 5 baddies been updating over the years or have they been dormant?

Sometimes when an old dormant account is paid it updates to the current date and makes it look new.

If they are revolving and the CL and balances are reported, paying them would remove the balances from factoring into your score and you could see a bump.

If they are collections, paying them should not impact your score either way.  It could if they are in the account section even though they aren't supposed to be.  The only way to improve your score with a collection is to have it removed.

Unpaid debt never goes away and though it may not show on your credit report it is still there and under certain circumstances can be shown to lenders/creditors.

[DaBears]

Unpaid debt stays in your credit file after it falls off your credit reports. Your score might drop a little but will climb quickly cause of you having no baddies on your credit report. I would pay off the old debt as much as you can. you have more positive TL's than baddies.