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When a charge off falls of your CR?

ConfusedbyCredit
New Visitor

When a charge off falls of your CR?

When two collection accounts/charge offs come off my CR in 2008 (hopefully) :
 
a) should I expect an increased CS due to less history of deliquency (my main negative) since my recent history is positive, on time payments (1cc, 1house, 1car)
or
b)  should it decrease since my credit history will be shorter and my recent activity is big (more debt-house, car).
OR
c)is it all just a crap shoot?
Message 1 of 4
3 REPLIES 3
Tuscani
Moderator Emeritus

Re: When a charge off falls of your CR?



ConfusedbyCredit wrote:
When two collection accounts/charge offs come off my CR in 2008 (hopefully) :
 
a) should I expect an increased CS due to less history of deliquency (my main negative) since my recent history is positive, on time payments (1cc, 1house, 1car)
or
b)  should it decrease since my credit history will be shorter and my recent activity is big (more debt-house, car).
OR
c)is it all just a crap shoot?


Its a partial crap shoot in the short term. You are losing the derog, but also the history along with it. Assuming it does drop.. it will only be temp . Not having the derog will increase your score over the long term.
Message 2 of 4
HouseHunter
Frequent Contributor

Re: When a charge off falls of your CR?

I had one fall off of two reports.  Increased one score by 98 points and decreased another by 43 so I say CRAP SHOOT.
Message 3 of 4
TheNewWorldMan
Valued Contributor

Re: When a charge off falls of your CR?

In the short run, FICO is a strange and skittish beast, so you may take a hit. But in the long run, losing a baddie, especially if it is the last of its type, gives your credit score a lot more headroom to grow.
- - - -
in a credit-scoring postnuclear Stone Age...
Message 4 of 4
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