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DP- paid chargeoff, immediate boost in score

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OldMuldoon
New Member

DP- paid chargeoff, immediate boost in score

Just wanted to drop a data point here for anyone in a similar situation.

I read a lot of guidance saying paying/settling a chargeoff won't help your score right away, but will over time if it is reporting monthly.

I paid a chargeoff that just updated today and got an immediate 35 point boost to my FICO 8 and 22 points to my Experian mortgage score.


The update is off-cycle so the improvement isn't from length of time since derogatory reporting. No other details on the the reporting changed- it's still there, just doesn't have a past due balance in the reporting amount.


Dirty scorecard with lots of other deroagatory marks. Wanted to share in case it might help anyone else!

Message 1 of 4
3 REPLIES 3
mfinsmi1
Established Contributor

Re: DP- paid chargeoff, immediate boost in score

@OldMuldoon yes its amazing how much your score can improve just from paying down your balance to 0 PLUS the charge off will stop reporting every month which stops the supression of your scores ... such a smart move good job!

Active Cards (Business & Personal):

Rebuilding Starting Scores - December 2021

FICO SCORE 8/9 - Current

Stats: : 6/6; 9/12; 10/24 --- AAoA 3 YRS, 7 MO --- INQ: EX-4/TU-5/EQ-1
Past Goal: 700 (Achieved 10/2022)
Current Goal: 740
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Message 2 of 4
OldMuldoon
New Member

Re: DP- paid chargeoff, immediate boost in score

Thanks! Honestly wasn't expecting any immediate score boost, just wanted to get it paid off- the boost was a nice surprise!

Message 3 of 4
IamWesty12
Frequent Contributor

Re: DP- paid chargeoff, immediate boost in score


@OldMuldoon wrote:

Just wanted to drop a data point here for anyone in a similar situation.

I read a lot of guidance saying paying/settling a chargeoff won't help your score right away, but will over time if it is reporting monthly.

I paid a chargeoff that just updated today and got an immediate 35 point boost to my FICO 8 and 22 points to my Experian mortgage score.


The update is off-cycle so the improvement isn't from length of time since derogatory reporting. No other details on the the reporting changed- it's still there, just doesn't have a past due balance in the reporting amount.


Dirty scorecard with lots of other deroagatory marks. Wanted to share in case it might help anyone else!


@OldMuldoon welcome to the forums. Congrats on seeing such a boost already.  You have made the right choice to join myfico as you will be helped over and over with the knowledge of the day to day posts our members share.  Continued success, welcome again and happy holidays!

Starting Score: 461
Current Score: 689
Goal Score: 775


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