Effects of settling in full on collection accounts.

[Anonymous]

---

jonhodges82 wrote:

Would there be a difference between a charge-off and a collection?

---

Yes, there is a big difference.  Paying a charge-off on a revolving account that reports a balance will help your revolving utilization.  Paying a collection will not.

[Anonymous]

OK....Great!  I think three were charge-offs.  I have a terrible score of around 580.  If you had to guess, how much would that affect my score?

[Anonymous]

---

jonhodges82 wrote:

OK....Great!  I think three were charge-offs.  I have a terrible score of around 580.  If you had to guess, how much would that affect my score?

---

Impossible to say without more information.  What was your utilization before, and what will it be after?

[Anonymous]

I'm not sure what the percent was, or will be, but each of the three charge-offs were over the amount of the original credit limit.