Regular Contributor
Posts: 232
Registered: ‎06-01-2012
Re: will paying off a charge off improve score?
[ Edited ]

My understanding is: the CO is a major derogatory and is weighted the same by FICO whether it is PIF or not.  However, a settlement is viewed as a negative - still, no diff in FICO scoring.   I also understand that FICO basically uses the "CO" for scoring and does not refer to Bal/PIF/Settlement -- a more experienced could verify, please.  Where it really comes into play is when a creditor manually reviews; the settlement would be more negative than a PIF.  It would be weighted as: CO: PIF, CO: with bal, CO: settlement with settlement being the worse.


I would suggest paying in full or if you can do it, a PFD.  If the PFD is not accepted I would PIF (whether via payments or lump sum) the GW then heck out of it for a removal of the CO and/or Tradeline.

Starting Score 4/15/2012:579 Ex-FAKO, 572 Eq-FAKO, 546 TU-FAKO (all were sub-500 in 2011)
FICO as of 3/08/2013: 627 EQ, 647 TU
FAKO as of 3/23/2013: 638 EX, 652 EQ, 648 TU
Goal 1: 600 FICO achieved 10/2012!, Goal 2: 650 FICO Across the Board - Let's take Baby-Steps!
**Amex Optima $1.3k, GE/CareCredit $1k, CapOne Secured $900, Barclaycard Rewards $500, CapOne Rewards $500, Citi/Shell $200**
Seedling Garden Club Member - Last App: 03/18/2013 - Goal: No apps for One Year: 3/18/2014