how bad does a CO hold your score down?

[rockymtngrl]

I have 2 CO's both with the OC, have never gone to collections, and I am making payments on.  One should be paid off this month and the other has about a year and a half to go on the payments.

The first one CO about a year ago and reports on all 3 as "pays as agreed" each month.

The second one reports as a CO every month but only reports on EQ.

I want to wait another month before I buy my score to pay down some cc debt and pay off the first CO.

I have 5-6 other accounts with no late pays in almost 2 years, cc currently at 65% of limits (but am paying that down).  When I got my score, last summer, which was right after one of the CO, I was probably close to or over 100% on utilization and EQ (reporting both CO) gave me 489 and the other 2 gave me 569.

Do you think there is anyway I might break 600 with those CO reporting each month?

[RobertEG]

Hard to say, as the impact of any one item depends upon what other derogs are being scored.

When the adverse item is a charge-off, the potential impact goes beyond just a three digit score.

It tells others pulling your CR that not only were you delinquent, but that the delinquency extended to the point that the creditor deemed the debt to have become "uncollectible."

Not a very favorable factor in any manual review.

[JCSC]

Robert,

So is paying the debt to a CA and having it reflected on your CR better than doing a PFD on that CA and having the CO remain as a charge off?

[Unoriginalnj]

IMO, nothing is better than pfd
:-)

[GoBigRed]

I would have to agree. having a paid collection acct on top of your co will not make it any better.