Revolving credit & Charge offs

[jaydee936]

Hello All! This is my first post but Ive been lurking around these boards for months!
We are currently trying to work on my husband's credit. We were not very smart in our 20's and are paying for it now.

His FICOs are: EX 514 / EQ 600 / TU 574  --Why is the Experian so much lower than the others?

Also, He has a CO with First Premier Bank card for the amount of $431 due to fall off 03/2016. In the Understanding your Fico Score, it states that he has made heavy use of his available revolving credit (100%) and if it was paid down, his scores would go up (this is the only revolving credit on his report).  My question is that would it be wise to pay this charge off to bring it to $0? Would his scores go up since we freed up his revolving credit or would it bring his scores down or have no effect at all since it is a charge off and not an active account? 

Thank you so much for your time!

[DaBears]

Hi jaydee and welcome to the forums!!!! If the bal on the charge off is higher than the credit line it will be factored into his UTIL % So if you paid the charge off in full he can see a bump in score. The Charge Off will remain just showing Paid, closed. I just paid them off back in May and for the love of me they will not delete their TL. Luckily it will drop off in Dec 14' 

[guiness56]

It does not matter what the balance or the CL are.  If both are reported it is factored into your utilization.

[jaydee936]

Thank you both for your replies! I will be paying it off asap