Rebuilding Your Credit

[cspar1212]

OK, just found out why my credit score is moving slowly. i have an old scana bill on there for 1000 that is a chargeoff. according to the simulator, my score will jupr over 50 points by paying off this charge. I contacted scana and they are unwilling on any level to doa PFD however guarantee that the account will show zero balance when paid. i need some advice here, do i just bite the bullett and pull a grand from savings and pay off this debt? does anyone have an online payment location to make the payment(s)..thanks

[cspar1212]

some details onthe account from eq. current status Bad Debt/Collection  dat opened Jan 2009 date of last activity jan 2010 account type open account. the account was listed as collection up until febuary 2012. from feb until now shows ok?

[Shogun]

Paying the bill will not improve your scores.  It will be a paid collection and will still affect your score.   Are you sure you've exhausted all avenues for the PFD?  Maybe a CEO?  Someone up the ladder maybe?

[cspar1212]

will not affect my score? but the fico simulator says that it will jump atleast 50 points if i pay it? the scana debt for some reason is included in with my credit card debit cause it says you have 1400 debt that needs to be paid down in 24 months. 83 on credit card, 300 on credit card and 1000 from scana...so whats up??

[Shogun]

Don't trust score simulators... Believe me on this one.   It is a baddie, if you pay it, it will be a paid baddie.  You need to try and PFD to get rid.

[RobertEG]

I see no issue of a collection, only a CO.

Apparently, the unpaid debt is still be included in your % util, and thus impacting your score in that category.  That factor seems to be what the simulator is basing a score improvement upon, not the CO itself.

What paying wont do is remove the reporting of the CO, and thus its impact as a major derog in your payment history portion of your scoring.

[cspar1212]

the scana is not listed as a collection.. i show no collections on my report if this helps..

[Shogun]

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cspar1212 wrote:

the scana is not listed as a collection.. i show no collections on my report if this helps..

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As RobertEG has stated this is not a collection.  It is a charge off from the creditor.  Hence that is why it is not showing in collections.  But he spoke of the util of the account and it's affect with the simulator.  If it is a CO there should be no balance, it should be at $0.  Maybe someone will chime in on this but I believe that is how it works.

[RobertEG]

The fact that a creditor does a charge-off does not require reporting of a $0 debt balance.

A CO is an internal accounting measure, and does not "charge-off" any consumer obligation for the entire debt. 

The full debt remains due and collectible, and can continue to be reported as such.

The OC is only required to report a $0 debt balance if the debt is either satisfied or sold to another.

[cspar1212]

so with this being said, is everyone in  agreeance that paying the debt will not raise my fico and could even hurt it!?