Strategy

[krmurrayjr10]

I've been working on rebuilding my credit for some time now and currently have several unsecured revolving accounts with perfect payment histories and low utilization, and several installment loans (including a paid off auto loan) up to  date.

That leaves the baddies still on my report from years past.  Assuming I have limited resources with which to address charged off balances, which of the following events are likely to immediately raise my score the most, and is there anything with respect to these accounts I should NOT do?

1.) A chargeoff from 7 years ago with a balance still due falls off my report

2.) I pay in full a chargeoff from 2 years ago and it remains on the report.

3.) I pay something on a chargeoff from 2 years ago and the creditor deletes it from my report.

4.) I dispute a collection account (no longer the OC) and it is deleted from my report.

5.) I reduce utilization on current accounts from, say, 20% to 10%.

Thanks for any input!

[RobertEG]

FICO contnues to score derogs regardless of whether the debt is paid, so paying without credti report deletion will not halp scoring.

As for deltion of old derogs either by way of exclusion or earlier deletion by the creditor or debt collector, both charge-offs and collections are major derogs.

Deletion of one major derog when others remain will usually not have signficant effect on scorng, as you still remain in a "dirty" scoring bucket, or category.

It is thus eifficult to assess the effect of one item on scoring.  What remains must also be considered.

However, in the broader view of improving your credit, paying does satisfy the debt, which can, in and of itself be basis for denial of new credti, regardless of scoring.

[Anonymous]

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@krmurrayjr10 wrote:

I've been working on rebuilding my credit for some time now and currently have several unsecured revolving accounts with perfect payment histories and low utilization, and several installment loans (including a paid off auto loan) up to  date.

That leaves the baddies still on my report from years past.  Assuming I have limited resources with which to address charged off balances, which of the following events are likely to immediately raise my score the most, and is there anything with respect to these accounts I should NOT do?

1.) A chargeoff from 7 years ago with a balance still due falls off my report <- this is likely messing up your UTI if it was a revolving account.

2.) I pay in full a chargeoff from 2 years ago and it remains on the report. <- Again if its a revolving accounts its messing up your UTI

3.) I pay something on a chargeoff from 2 years ago and the creditor deletes it from my report. <-cleaner is always better

4.) I dispute a collection account (no longer the OC) and it is deleted from my report. <- again, cleaner is always better

5.) I reduce utilization on current accounts from, say, 20% to 10%. <- not a lot of difference between <10% and 20%, no more than a handful of points, assuming 1&2 are cleared up.

Thanks for any input!

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 Really is no way of knowing which is going to be most efficient.