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UPDATE: Settled a Charge Off, 62 Point Increase

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New Member

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

This is great news. You are a bit further than I am in this credit rebuilding process but stories like your motivate me so much. Thanks for sharing this. Although I am very new to this forum I was a bit skeptical on how much paying off a charged off account really bumps ones score...but I willd definitely call LVNV on a debt I owe. Smiley Happy
Message 11 of 13
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Frequent Contributor

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

Congratulations! I know how it feels too. What a relief. You're doing a fantastic job and rebuilding!

 

I was able to settle on a large credit card debt (90 days late) for about 40-45% of the original balance. It wasn't charged off yet, so I have "settled for less than full amount" on my credit report, which I can live with. I think my FICO went up about 70 points. In my case, it was the amount of debt just as much as the utilization that was holding my score down. Not long after the settlement, I started getting a few modest credit card approvals (and then a wonderful Discover It unsecured card a scant three months after the settlement!). 

 

I still have to learn patience, but when I look back, it's amazing how quickly things have started to look up. I mean, I'm still not "there" yet, but it's such a difference from about 10 months ago. An amazing difference.

 

Edit: I should add that I still have some more debt I'm paying off, on some cards that were never delinquent. I was able to get on a 5-year payment plan with the bank with low interest (and the cards are closed). This keeps my utilization way up. But even with that, it's still amazing how things have improved. 

 

 

FICO8: Nov 20, 2018:
FICO8: Nov 20, 2019:
FICO8: Sep 21, 2020:
Goal for December 2019: FICO8 640-700 (reached! Fico 681!)
Goal for December 2020: FICO8 685-710
Overstock Store Card, $2,250Walmart Store Card, $500 limitDiscover IT Cash Back, $2000Navy Fed cashRewards, $2000Shell Citi store card, $800Navy More Rewards, $17,000AMEX Cash Magnet, $1000Citizens Bank, $2,800Amazon Prime Store Card, 1700Cap1 QS, $1000FBNO Visa, $1600RIP Green Dot Platinum
Overstock $7,750, Walmart $500, Discover IT Cash Back $2400, Navy Fed cashRewards $2000, Shell (Citi) Fuel Rewards $800, Navy More Rewards $17,000, AMEX Cash Magnet $1000, Citizens Bank Cash Back $2,800, Amazon Store Card $1700, Cap1 QS $1000, FBNO Visa $1600, (RIP Green Dot Platinum Secured)

Starting Score: 539
Current Score: 684
Goal Score: 760


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Message 12 of 13
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Regular Contributor

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

Fantastic job! I’m a big fan of paying off debt. Best feeling!
Starting Score: 652/644/654 (March 7) and spouse 649/647/602
Current Score: 725/726/719 (Jan 7 and my spouse is 731/715/721 (Jan 7)
Goal Score: 720


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Message 13 of 13
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