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Paid charged off auto and it significantly raised my score

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Paid charged off auto and it significantly raised my score

Too stoked. After reading on here about how paying off charged off accounts won't show raise my fico score much right away, I was a little disappointed, but went on about paying it anyway.

This morning I wake up to a notification that my score had changed. So I jump on to find they finally reported the account as paid! Also a 34 point increase putting me back in the 700 club! I still have one remaining charged off credit card that is paid and still not reflecting. I hope I see a similar increase from it.

A few DP:

The CO is nearly 6 years old that reflected a charged off amount of 16k. Balance of 21k. Now balance of zero and notes say "previous CO but paid".

Still reporting is a FPB card that refused to do PFD. $450 balance on a $300 limit. Also 6 years old. Paid for, just waiting on it to update. One other collection I did a pay for delete on and will be falling off shortly!

AoOA 13 years
AAoA 6 years
AoYA 4 months
CC Util 24% (paid down to 1% but hasnt reported yet) AZEO

I'm wondering how much the second CO being paid, 0 collection status plus getting my CCs to AZEO will push my score up!!! I havent been part of the 700 club in 6 years and it feels mighty fine being back!!!

4 REPLIES 4
Senior Contributor

Re: Paid charged off auto and it significantly raised my score

Congrats! Yes paying off those CO's lowered your util and there's your gain in points. Once you get your cards paid down to AZEO or less than 8.99%. You'll see another bump. Way to go and get back on track with your credit. How much more in gains will be hard to say. But do let us know how it works out. Awesome!





My posts are JMHO. I DO NOT claim to be a FICO expert. Just sharing my experiences from rebuild to recovery after BK DC. My siggy is not to brag at all. Just to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 2 of 5
Established Member

Re: Paid charged off auto and it significantly raised my score

I didn't realize that an auto loan would have an affect on utilization. That's good to know!

Also want to note that I started my rebuild journey 6 months ago with a 540 fico 8. Worked hard to get a couple collections to PFD and finally got every one of them to agree. Paid off 21k on that charged off auto and just waiting for these last 2 baddies to show paid (CO CC) and be deleted (collection). Now over a 700 fico 8 across the board!

I'm saying this for 1, I'm proud as **bleep** of myself and staying on it, working extremely hard and staying on top of every correspondence with every company. Also wanted to point out to anyone starting the credit rebuild process that if ya work hard and follow a lot of the advice on this forum, it can be done. I'm now seeing the light at the end of the tunnel and I cant wait until it's all green pastures!!!
Message 3 of 5
Regular Contributor

Re: Paid charged off auto and it significantly raised my score

 


@Ldennis wrote:
I didn't realize that an auto loan would have an affect on utilization. That's good to know!

Also want to note that I started my rebuild journey 6 months ago with a 540 fico 8. Worked hard to get a couple collections to PFD and finally got every one of them to agree. Paid off 21k on that charged off auto and just waiting for these last 2 baddies to show paid (CO CC) and be deleted (collection). Now over a 700 fico 8 across the board!

I'm saying this for 1, I'm proud as **bleep** of myself and staying on it, working extremely hard and staying on top of every correspondence with every company. Also wanted to point out to anyone starting the credit rebuild process that if ya work hard and follow a lot of the advice on this forum, it can be done. I'm now seeing the light at the end of the tunnel and I cant wait until it's all green pastures!!!

You should be proud.  You worked hard at improving your score.  Why not be proud of the work you put into that?  A jump from the mid-500s to over 700 is a great score increase for a 6 month time frame and definitely something to be proud of.

Message 4 of 5
Contributor

Re: Paid charged off auto and it significantly raised my score

Nice work! Post updates when you get them. Saving money and patience to be able to pull the trigger is very hard. That is a big payoff. Enjoy the scores!
Starting Score: 652/644/654 (March 7) and spouse 649/647/602
Current Score: 725/719/719 (Aug 26h and my spouse is 722/700/714 (July 3)
Goal Score: 720


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Message 5 of 5
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