@Anonymous wrote:
Ok everyone, I'm fuming right now. I have been working hard on my credit from last years financial hardship and I probably check my scores daily at this point since I'm trying to get a mortgage. Well, I have to get my card balances down and I had a charged off Chase auto account that had an $800 or so balance. I also had my wifes car in my name that had a 15k balance that I took out of my name for DTI reasons but still have my car installment in my name as well. On Friday, the rest of my credit card balances post to under 9% util, and my mortgage score was 627 on experian, which is my mid score. Well today, the chase auto chargeoff posted a zero balance as well as the 15k car loan reported zero/paid balance. My score then dropped 35 points! NOTHING else posted, not collections, not other balances, nothing. My loan officer used a tool and said that my score should have gone up 15 or so points for the chase balance paid, and the 15k car loan would have zero effect on it. I dont get it.
Oh and just to add, Friday my FICO08 score was 635..went up to 647....
There's your answer. Paying a charged off auto loan is not going to increase your scores. The loan officer's simulator was possibly seeing that account as a CC charge off and counting it against UTI%, hence the anticipated score increase with the payoff, or it was ismulating a FICO 8 score rather than FICO 4. The drop would have come from the account updating and looking "fresh". Your scores should rebound as it ages.
FICO 8 scores paid CO's and Collections better than unpaid.
I went on an app spree and my highest score dropped 10 points, yet it recovered 4 of the ten points in just 6 days!
Starting Score: 472