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UPDATE: Settled a Charge Off, 62 Point Increase

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UPDATE: Settled a Charge Off, 62 Point Increase

A little bit of good news and an update I wanted to share. I have good credit in sight!

 

Summary/TL;DR: I made a post a while back in regards to settling a charged-off account with Chase. I paid it off early (agreed on $1,000 / orignally owed $5,200), and a few weeks later when my credit updated, all three bureaus showed a 62 point increase. Stoked because this puts me in a much better range for a mortgage application and with a few more payments on my remaining cards to lower my utilization, 720+ is in sight.

 

Longer Story: I had gone through a nasty divorce over 3 years ago. I had 4 credit cards. The Chase Card had the highest minimum ($200 +/- a month), and my other three cards all added up to around $200 +/- month.

 

Didn't notice my ex had charged a lot on the card right after she moved out (it was saved online on her computer). We "shared" it but it was only in my name. Spoke with my lawyer about it, but aside from paying her more money to pursue legal action, which I didn't have, I ultimately let it get charged off while keeping the remaining cards in good status (it made more sense to pay 3 at $200/mo rather and let 1 get charged off than vice versa).

 

Anyone who has gone through a divorce know how it drains your financials. I had to max out the remaining cards to pay my lawyer, borrow from 401k, and literally slash expenses, and live off bare minimum.

 

Fortunately, everything slowly got better. Remarried, paid off my lawyer, my child support got cut in half (originally, my ex [who worked under the table] reported no income for the first year, so I had to pay the max rate which was insane).

 

When life was back to normal, I made  goal earlier this year to attack my credit. I was at 100% utilization, and that charge off was lingering, and I was dwelling in the mid-500's. Called Chase, explained what happened, they offered me a settlement of $1,000 (it was at $5,200).

 

After getting my utilization down, and settling, I am now cruising at high-600s. Also have a bonus coming in this week, and can pay a huge chunk towards my remaining cards to get my utilization down even further.

 

It sucks going through bad credit. I finally feel I can breathe a little bit. It's taken a lot of work, cutting expenses, and just busting my tail, but this increase, as well as the steady increases from the utilization down, has been worth it. I hope others who have gone or going through similar experiences know there is a light at the end of the tunnel if you stay the course.

 

Thanks for this board for the advice, and just wanted to share a bit of good news.

 

Message 1 of 13
12 REPLIES 12
Senior Contributor

Re: UPDATE: Settled a Charge Off, 62 Point Increase

Nice. Util sure can kill a score. Congrats on the rebound.





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 13
Valued Contributor

Re: UPDATE: Settled a Charge Off, 62 Point Increase

Great recovery OP, always nice to see someone able to climb and claw their way back!


Rose Gold | BCP | Delta Gold | Hilton Surpass | Hilton Honors | IT Cash | IT Chrome | Quicksilver | Target | VS | Home Depot | Lowes | Firestone | Wayfair | Kohl’s

5/24, 1/24, 76445/24, who cares #HappyWithAmex





Entering the garden 5/27/2019, staying until 2020




Message 3 of 13
Established Contributor

Re: UPDATE: Settled a Charge Off, 62 Point Increase

Congratulations on your success!

Thank you for sharing your story. These are words of encouragement for other members.
Message 4 of 13
New Member

Re: UPDATE: Settled a Charge Off, 62 Point Increase

Thanks for the story.....I've been going back and forth on whether to settle or pay in full. This was great motivation!!
Message 5 of 13
Member

Re: UPDATE: Settled a Charge Off, 62 Point Increase


@Wellspa wrote:
Thanks for the story.....I've been going back and forth on whether to settle or pay in full. This was great motivation!!

For my situation, the settlement was well worth it! It's nice not having to worry about that lingering anymore, and to pay much less than the balance owed. Now I can focus on getting my utilization down and not worry about this haunting me! Good luck, and thank you for the kind words!

Message 6 of 13
Contributor

Re: UPDATE: Settled a Charge Off, 62 Point Increase

Fantastic. Love seeing people paying off CO accounts!
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


Take the myFICO Fitness Challenge
Message 7 of 13
Regular Contributor

Re: UPDATE: Settled a Charge Off, 62 Point Increase

What an amazing increase.   After whining on a thread I started yesterday about a 4-point decrease in my Experian FICO score,  I took to heart what a few commenters pointed out, which is until I get my charged-off account completely paid off it will continue to hold my scores down and is a big negative on my report.   I owed Cap One $3966 on a $4,000 CL.  I have been paying $200 a month, sometimes more, since last September.   I have paid it down to $1366.   But I need to go ahead and pay it off and not drag it out for six more months.  Reading how positively it affected your credit scores is really encouraging.  Although, I doubt I will get the jump in points you did. 

 

Again, your story was inspirational.  Congratulations!

Open Credit Cards:
Green Dot Primor Secured (5/18) - $450 CL
Capital One Platinum (8/18) PC'd to Quicksilver (9/19) - $600 CL
Capital One QuicksilverOne (3/19) - $1500 CL
Merrick Bank DYL VISA (6/19) - $700 CL - (Doubles to $1400 CL 12/19)
Discover it Cash Back (9/19) - $1000 CL

Experian FICO Score - 8/2018: 528
Experian FICO Score - 9/2019: 645
Message 8 of 13
New Member

Re: UPDATE: Settled a Charge Off, 62 Point Increase

Did you settle to delete? More context please
Message 9 of 13
Frequent Contributor

Re: UPDATE: Settled a Charge Off, 62 Point Increase

Yes that would be great info. Was it a pay for delete or is it reporting as paid; settled for less?








Message 10 of 13
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