cancel
Showing results for 
Search instead for 
Did you mean: 

Paying off Charged off accounts to improve credit score

New Member

Paying off Charged off accounts to improve credit score

Like many people, I went through a really stupid phase where money is concerned. I have far more self control now and, with the exception of 6 negative entries, have a pretty attractive credit report.

 

Four of those are the same debt, a credit card I defaulted on about seven years ago. Those I think are due to come off my report in 3 - 5 months (this is what my Experian report says). The other two are debts I would just as soon pay, a 61 dollar parking ticket (due to come off in July of 2015 and a library fine of about $170 (due to comeoff June of 2014).

 

Is it in my best interest to pay off those last two? My current credit score is around 661, how much improvement should I expect the middle of this year when the four age off?

Message 1 of 3
2 REPLIES
Moderator Emeritus

Re: Paying off Charged off accounts to improve credit score

Just paying them will not cause your score to go up.  They will still be negative accounts on your CR but with a zero balance.  Best option is to try to do a PFD.  This way the baddie will be deleted.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 2 of 3
Epic Contributor

Re: Paying off Charged off accounts to improve credit score

If the debt is being reported by the OC, paying it off could make your utilization go down, thus making your score go up.

 

It would depend if those items are counting toward your utilization.  With an OC they normally do, if it is a CA reporting, they never (should) count in utilization.

Message 3 of 3