If you have the money to settle I would do so. At this point you can pretty much settle for less than what is owed, such remarks do not penalize you. You want to get the balances to zip ASAP so the reporting can stop.
@Stone1982 wrote:So will the reporting being stopped increase my score at this point untill their deleted next year, or what factor or factors will help me get an increase? It just seems right now I'm not gaining any points monthly, especially on TU.
Not knowing the rest of your profile and what you have done to rebuild, its possible these are being held against you in the fact that they are CO and they could also be affecting your utilization. Utilization of revolving credit makes up 30% of your Fico score so you could gain some points based on these balances coming to 0. I did assume these are credit cards and not defaulted installment loans.
@Stone1982 your scores are going to have a hard time growing with a charge off reporting . if you have the ability to pay them to 0 i would do so ASAP , that way your report will report "paid in full / past charge off" - this will boost ur score (by how much i cant say because i dont know the rest of your credit profile - when i did it i got around +20 pts) and then in 2023 the entire account will be removed and that will help in the long run
@Stone1982 wrote:So will the reporting being stopped increase my score at this point untill their deleted next year, or what factor or factors will help me get an increase? It just seems right now I'm not gaining any points monthly, especially on TU.
From experience, you will only get a significant point boost when ALL the COs go to $0 balance and stop reporting monthly. The models appear to penalize for a past due CO big time whether it's 1 or more. Once you get the last one settled, it will pop your scores up nicely.
I'm now waiting for my settled COs to drop off next year and have been able to get easily into the 700s with FICO 8s.
@Stone1982 wrote:Great to hear. I think I might go for it I'm stuck in .the 650-665 range on TU & Experian so it would help. Ty
You're welcome. Keep in mind that they will be willing to work on a low settlement even if you do payments. Negotiate in good faith and you will get them all paid off at a significant discount. It's worth the score boost and peace of mind. Good luck!