I have a question, why is there a consenses that when you pay off charge offs and derogatory accounts it does not change your score, but the simulator says if you pay them off it will raise your score? Mine says 70 points.
@LoveGoodCredit wrote:I have a question, why is there a consenses that when you pay off charge offs and derogatory accounts it does not change your score, but the simulator says if you pay them off it will raise your score? Mine says 70 points.
With a CO that is updating on a regular basis the only way to gain points from paying it off is if its being factored into your utilization, other wise there is no score change at first but as it stops updating and ages then your score starts to rise. With CA if its updating regularly there wont be score change but will stop updating like the CO and overtime you gain points. With a PR it doesnt matter if its paid or unpaid (Judgment/Tax Lien) its the fact that it happened.
Thank you
Real reason....FICO08. Prior to that paying a CA hurt your score (made it new).
Starting Score: 472
@Momof5 wrote:Real reason....FICO08. Prior to that paying a CA hurt your score (made it new).
Think you mean FICO 9, which I don't think the simulator is tuned for but I could be mistaken on that.
