I have a charge off account from US bank from three years ago. I am in a position to pay it completely. Because of it my score is hurting
Will that help improve my FICO score ? Can it be removed from my credit history after payment
How much time it takes from paying to see the improvement in score ?
I am planning to buy house in next six months
Any insight is appreciated
There will be very little scoring improvement at first, but once you pay it, the updates will stop and in time your scores can start recovering.
US Bank will not remove charged off account, but will update to a "Paid" status.
With that said, six months is very short in terms of *credit time*, so if you're looking at score improvement, you may need to adjust your timeline a little bit further out
If the account wasnt sold to a collection agency and had a balance and then you paid it off. You could gain some points. It would be at 0% util then. Thats about the only way to get some points. Main thing is it will quit reporting neg each month.
How much of a bump did you get?
I got a decent bump on mtg scores when I paid a charge off. But everyone’s report and history is different. If you want to buy a house in my opinion you need to pay it sooner not later to let the payoff age on your report.
Any other CO or derogatory?