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Question regarding charge-off

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Re: Question regarding charge-off

Hi. In your reply, you mentioned a hit you take when paying off an old charge off. How much of a hit is that, and when does the fact that the charge off has been paid start to pay off, in terms of an increasing, or at least stabilized, FICO score? Thanks

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Re: Question regarding charge-off


@cdkjourn wrote:

Hi. In your reply, you mentioned a hit you take when paying off an old charge off. How much of a hit is that, and when does the fact that the charge off has been paid start to pay off, in terms of an increasing, or at least stabilized, FICO score? Thanks


Depends. If it's an account that's already updating monthly, it will be a business as usual

If the account has not updated in a while, 15 points seem to be an average, give or take. 

While that seems like a lot, if that's your last unpaid negative, it will stop updates and your scores can start recovering. You will recover a lot more over time than 15 points.  It's a gradual process, not an over night thing and it starts after the last update 

If you dont pay it and updates continue, score stays suppressed. 

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