topic Re: Paid old chargeoff - score went up 13 points in Understanding FICO® Scoring

Paid old chargeoff - score went up 13 points

Anonymous — Mon, 31 Mar 2008 13:32:20 GMT

I've been paying a couple old bad accounts on my credit report and wanted to share that I paid a chargeoff and the only difference on my report is that it is now reporting as a paid chargeoff. My score went up 13 points. It was not a revolving/credit card debt.

I'm very surprised because everything I read says paying off old debt (bad debt) will probably not help your score.

Message Edited by mxnuy1 on 03-31-2008 06:32 AM

Re: Paid old chargeoff - score went up 13 points

Junejer — Mon, 31 Mar 2008 13:34:36 GMT

Congrats. What kind of charge off was it? When is it due to fall off of the CRs?

Re: Paid old chargeoff - score went up 13 points

Anonymous — Mon, 31 Mar 2008 14:53:38 GMT

It was a 2 year old collection/chargeoff. I've been trying to clean up my credit from a bad situation I got into a few years ago. No baddies added in 24 months and only positive added since.

I'm really surprised, because that's more points than I have received for having a negative deleted altogether. Plus, I settled it too - it was Verizon for $657.

I paid off a collection at the same time that is still under investigation for updating and I'm waiting to see if I get any points for a paid collection.

Is it possible these are FICO 08 changes - getting some points for paying old debt?

Re: Paid old chargeoff - score went up 13 points

Junejer — Mon, 31 Mar 2008 21:40:56 GMT

No, it's not FICO 08, as it's not in effect yet. When you paid it, did you attempt at a PFD?

Re: Paid old chargeoff - score went up 13 points

Anonymous — Mon, 31 Mar 2008 22:54:23 GMT

I've been attempting PFDs on several different accounts since last September. I haven't had luck with a single one. I decided to pay the Verizon bill before it was recorded as having gone to a collection agency.

I checked the report. It's still on there. The only difference is that it's showing paid and I know the 13 point gain was related to the payoff because it was an alert that an account had changed to paid/zero balance(giving the Verizon information) and the 13 point score increase.

Message Edited by mxnuy1 on 03-31-2008 03:54 PM