so i checked my fico today and its a 616. I have a recent credit card that is charged off, and two other negative items that are supposed to fall off next month. I currently have an auto loan and a personal loan open threw my cu. what to i need to start doing to get where i need to be.
My primary focus would be on the charged-off CC, not so much with the view of improving current score, but with the view of preventing further hemmoraging.
A charged-off account is often a precursor to their referral of the debt to a debt collector, or to sale of the debt to attempt to recoup a part of the loss.
Either may result in a collection reporting, thus adding another major derog.
A CO can also result in legal action if the debt is still within SOL.
And it represents unpaid, delinquent debt that can be a show-stopper in and of itself in any app for new credit, regardless of FICO score.
Paying the CO'd debt wont result in score improvement per se, as it does not require deltion of the reported CO, but wiill act to cease further derogs or having unpaid, delinquent debt.
You could ask for a PFD as part of your payment offer, and possibly get the reporting of the CO deleted.