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Hey folks,
How long does it take for paid charge offs to stop affecting your credit score negativly?
Thanks!
@LoveGoodCredit wrote:Hey folks,
How long does it take for paid charge offs to stop affecting your credit score negativly?
Thanks!
It will affect score the entire time it is on file, as its status date ages the amount if affects will diminish.
Does your credit score go up each month it diminishes? The score stimilutar isnt really helpful........
@LoveGoodCredit wrote:Does your credit score go up each month it diminishes? The score stimilutar isnt really helpful........
I dont know. I did not have the opportunity to follow a CO and its aging, mine were gone before I started posting on forums and began to learn in detail how Fico scoring works. If I have to guess I would say no its not going to increase every month there are probably certain thresholds that get crossed and you get a few points for it.
A charge off is a major derog. Arguably, the most damaging of major derogs.
FICO scoring of each category varies depending upon theri overall categorization, meaning that improvemets can vary depending upon the category (or "scoring bucket") that you ae in.
Typical scoring buckets include thin or thick files for mix of credit, and so-called clean or dirty files for payment history.
The presence of a major derog keeps one in a dirty file categorization.
Whikc means that as long as the CO remains in your credit report, improvments in payment history will be slower.
Once a file becomes clear of all major derogs is usually when more substantial score improvement is seen.
In order to protect the trade secrets of their scorng algorithms, FAir Isaac does not release specifics of the rates of score impact and improvement.
Thanks I have a house and two cars that report every month with no lates. But when my husband got sick the credit cards took a hit, there were 4 of them now charged off. I paid amazon so I might be able to good will them. The CFB had 5 other collection accounts removed because I knew those debts were paid. So now I only have charge off accounts anda student loan that is deferred (deferred whenhe got sick). We were trying to refi to pay medical. I needed to get another 20 points on my ficoscore to qualify for the streamline. Hopefully when the reports update and the collections, not charge offs are removed, my score will gain a few. Today,I just got a point increase in equifax. Smh... but i'll take it