One main financial updating

[w121jld]

One main financial called me today and stated that since my account was settled that they are going to remove the charge off and just report as settled in full. Will this raise my credit score? 

[Anonymous]

No.

[w121jld]

Even if it is reporting every month as a charge off?

[Anonymous]

Does it update every month?

[Anonymous]

So it will still be a charge off, but settled in full? Once it stops reporting and ages it won't be as bad. But I don't think your scores will increase because it is settled.

[w121jld]

It does report every month. She said the charge off will be removed. 

[Anonymous]

If the CO status is removed, yes, that should help your scores. How much depends on the age.

[RobertEG]

Deletion of the reported charge-off will remove a major derog from scoring.

The extent to which that might affect scoring is then dependent primarily upon what other derogs remain.

If there are still other major derogs, you remain in a less-favorable "bucket" under Payment History, and significant score increase is unlikely.

However, if the CO was your last major derog, you will move into a "clean" scoring bucket under Payment History, and more significant score increase is likely.

[Anonymous]

---

@RobertEG wrote:

Deletion of the reported charge-off will remove a major derog from scoring.

The extent to which that might affect scoring is then dependent primarily upon what other derogs remain.

If there are still other major derogs, you remain in a less-favorable "bucket" under Payment History, and significant score increase is unlikely.

However, if the CO was your last major derog, you will move into a "clean" scoring bucket under Payment History, and more significant score increase is likely.

---

Age is a factor as well, a CO under 2 years old will yield more points when removed than a 5 year old CO, all other things being equal.

[w121jld]

The account is about 5 years old, but it's been charged off reporting every month since 05/2012.