@sjt wrote:Hi Everyone!
Im helping out a friend with cleaning up their credit and have some questions about paying off debt that includes charge off balances that is still owned by the original creditor and reported monthly. Also have questions about simulator results and its accuracy.
Current Situation:
Friend has a total of $22,033 in debt, of that $12,250 is charged off debt that is still owned by the original creditor and is reported monthly. $5600 is listed as past due. He plans to pay off the entire debt by September. Current score is 606 on Experian and 627 on Trans Union.
Scoring Simulator Results:
Experian:
When we simulated paying of the revolving debt of $9,783, it showed a bump of 10 points to 616. When we simulated paying the entire balance of $22,033, it shows a bump to 621. My question is should the bump be more then 15 points? Especially when he is paying off charged off debt that is reporting a past due balance every month.
Trans Union:
When we simulated paying off revoling debt of $9,783, it showed a bump of 20 points to 647. When we simulated paying the entire balance of $22,033, it showed a bump to 652. Again shouldnt the bump be higher.
Im addition to my question about the simulated results, Im wondering how accurate are these simulators and if the bump in score would be higher.
Thanks!
1. No the simulators aren't necessarily accurate. Sometimes it works out like the simulator predicts, sometimes it doesn't.
2. Paying off the charged off debt helps in the long run, but in the short run it doesn't remove the blemish from the credit report.
3. No one can predict how high a bump will be, but one could make a better guess if one had a better picture of the person's entire profile.
