Understanding FICO® Scoring

[golo]

I just paid off an old charge off and SW sent me this alert,my score is the same,apparently didn't move.Here are what the SW alert says,I was expecting a good bump,sighs


Account opened: 5/2006 Description: Paid charge off
Amount in high credit is original charge-off amount
Fixed rate
  Previously reported Newly reported
Balance: $1,200
Past due: $0 $0
Status: Bad Debt; Placed for collection; Bad Debt; Placed for collection;
Last activity: 6/1/2007 6/1/2007
Terms duration: Not Reported 1M
Description: Charge off account
Amount in high credit is original charge-off amount
Paid charge off
Amount in high credit is original charge-off amount
Fixed rate

[RobertEG]

I can see your confusion, as the "status," "balance," and "past due" entries are not clear.

If the OC still owns the account, and presuming you paid them, the "past due" prior to payment confusingly shows $0.

Use of the term "status" is also unclear, as your credit file has various status codes, one recording its "Current Status," which should have been updated to show "Paid," and its status immediately prior to its current status, which would record its status of having been charged-off or placed for collection.

The most important item is missing.... it does not clearly show the current balance to be $0.  Maybe that is what is meant by the "past due" or $0, $0.

Pretty crummy summary.

Regardless, your expectation of a score bump was unfortunate.  Paying a delinquent debt does not delete the prior reporting of derogs on the account, which in this case is a charge-off. It is still scored as the same major derog.

[golo]

Thank you Robert for your response,if it's confusing you Robert,imagine for me,
I taught that it was including in my revolving accounts and since I paid it in full my credit utilization would have been better now therefore giving me a bump.
Sighs

[Scene]

Since you paid it off, maybe you can send a GW letter and get the collection removed from your report. If you do that you should see a bump in your score, but as always your mileage may vary.

[golo]

Can anybody explain what this mean? I just paid off a charge off,but i don't understand what the terms of duration 1M means.Thanks in advance.

Account opened: 5/2006

Description: Paid charge off
Amount in high credit is original charge-off amount
Fixed rate

	Previously reported	Newly reported
Balance:	$1,200
Past due:	$0	$0
Status:	Bad Debt; Placed for collection;	Bad Debt; Placed for collection;
Last activity:	6/1/2007	6/1/2007
Terms duration:	Not Reported	1M
Description:	Charge off account Amount in high credit is original charge-off amount	Paid charge off Amount in high credit is original charge-off amount Fixed rate

[Revelate]

I think that just means that the tradeline has been "inactive" now for 1 month... meaning you paid on it last month and the creditor / CA did not send an update (Not Reported in FICOese) to the bureau after it was paid.

That's standard as far as collections go, I would assume a CO is handled similarly from a reporting perspective.

[golo]

Thank you for your input Revelate,but if the creditor did not send an update,why did SW pick up some activity? Thanks in advance fellas for any output! : )

[Revelate]

I don't use SW, but at a swag, just because the creditor didn't send anything, there's still an update made by the CRA to that effect, and that might trigger the alert.