Charge offs fall off

[lissanne]

I have four credit card charge offs that are falling off my credit reports in the next couple of months. How is this going to effect my credit score? Does the amount of the charge off determine the amount of points that increase your score? Can I even expect a credit score increase?

I have one for $6447, one for $1000 that states "settled less than full amount", one for $9213 that states "paid in full, was a charge off",  and one for $1095. 

Any advice is appreciated.

[sjt]

---

@lissanne wrote:

I have four credit card charge offs that are falling off my credit reports in the next couple of months. How is this going to effect my credit score? Does the amount of the charge off determine the amount of points that increase your score? Can I even expect a credit score increase?

I have one for $6447, one for $1000 that states "settled less than full amount", one for $9213 that states "paid in full, was a charge off",  and one for $1095. 

Any advice is appreciated.

---

All charge offs whether paid/settled/outstanding have a negative effect while it remains on your reports. 

You will get the a big bump in score when all 4 charge offs get deleted. You will get an increase when the charge offs with a balance get deleted because the balance is factored in your utilization and is considered a delinquent debt.

[jamie123]

You will see a small bump as each of  the first three charge offs fall off. The biggest, and it will be the biggest bump, will happen when the fourth and last charge off falls off leaving you with a clean report.

If you still have any baddies on your reports your scores won't rise much. Your scores will rise the most when the last derogatory falls off leaving you will a 100% clean report.

[Anonymous]

---

@sjt wrote:

---

You will get the a big bump in score when all 4 charge offs get deleted.

---

This would be true only if those 4 negative items are the only major negative items on the credit report of the OP.

As Jamie correctly stated above, the biggest score gain comes from the removal of the final baddie on a credit report.

Unfortunately with the limited information provided by the OP, it's impossible to say how much their score will increase (if at all).  OP, if you could post again and list if you have any other negative items on your credit report, along with their age and what they are it would be helpful in giving you a solid response.

[RobertEG]

Also, be aware that the CRAs handle the exclusion of charged-off accounts differently depending upon whether or not the debt has been paid, and thus the account remains delinquent.

If the exclusion of the charge-off leaves the account in paid, good-standing, only the reporting of the CO will become excluded.

However, due to the additional exclusion provision of section 605(a)(5), which requires all adverse information to become excluded no later than 7 years from occurence of the adverse information, if an account remains unpaid (delinquent) upon removal of the CO, the CRA policy is to then excluded the entire account.  Clearly, removal of the entire account has different scoring impact, such as removal of the account as possible oldest account and removal from AAoA scoring.