FICO simulation question

Anonymous · ‎12-11-2017

I just paid off a large charge-off that has been reporting monthly. When it updates next will I see a score change? It was my worst reporting account. I, of course, will be starting a GW campaign to have the entire tradeline deleted after it updates as well but just curious how paying that off will affect my credit. I have no open collections left on my reports and 1 collection pif reporting and 1 settled reporting. I have one small charge-off left to take care of. Beyond that I do have 1 30/60 late on an AU account that is over a year old and 2 30/60/90/120 late on student loans from the fall of last year.

Anonymous · ‎12-11-2017

It's possible you'll see something but it depends a lot on how much available credit you have on OPEN accounts, too.

Chargeoffs hurt you in aggregate utilization -- if you owed $3500 on a chargeoff and $500 on the other, that's a $0 limit, so it's $4000/0. If you have $5000 in open credit limits with $0 due, you had an aggregate utilization of $4000/$5000 -- or 80%. Paying it to $0 could mean you now have an aggregate utilization of $500/$5000 with the last remaining charge-off and an aggregate utilization of 10%. That could give you a FICO boost of 40-50 points!

But if you have no credit cards open now, or they're nearly maxed out, you won't see much.

If you're willing to be a guinea pig and share all your data points, I can throw it into my FICO calculator and make a very rough estimate and we can see what actually happens!

Anonymous · ‎12-11-2017

So what I have right now that should report within the next 30 days includes 2 nfcu secured cards at $500 (don't ask it was a computer glitch and I would hate to close one of them honestly) both reporting $0, discover $500 limit reporting $32, cap1 $200 limit reporting 0, citi $200 limit reporting $0, credit one $300 limit reporting $0, AU cap1 $6500 limit reporting $83, AU Chase $1500 limit reporting $0.

Anonymous · ‎12-11-2017

Forgot to include the last charge off is for $536

Anonymous · ‎12-11-2017

Based on you having additional major baddies present, the removal of one likely won't result in any (or much) score gain.

Anonymous · ‎12-12-2017

The last charge-off is only showing on Equifax. I am hoping TU will start to catch up to EX now that everything is paid off and there will be no more monthly delinquency updates.