Why removing a Charge-Off isn't always a good thing!

[llecs]

Today, DW's last CO (CapOne) naturally fell off on EQ as the DOFD hit 7 yrs. It was reporting 1 60 day late and 4 other lates 90 days or worse on EQ and reported as a paid CO. It was never paid, but CapOne sold the debt and after a zillion GWs and even PFDs post-sell off, we let it go.

I debated sending more GWs. The lates are bad, as is the CO itself, but this was her oldest revolving TL by over 5 years. Well, it fell off today and in anticipation of a pending demise, I pulled her FICO scores on 11/29 and again today after seeing the change. Her EQ FICO dropped 8 points! Yeppers, the length of history helped more than the CO and lates hurt. When engaging in repair with respect to OC accounts, don't always be eager to get those old COs removed. You can sometimes lose points when removing old COs.

BTW, for any FICO scoring folks, the AAoA remained unchanged and she wasn't rebucketed because she still has a CA reporting. It was her 3rd oldest TL, but oldest revolving.

[mrmagic9799]

I too debated the same thing, I have a student loan that defaulted , well I got back on track and brought it current for the last yr and a half. Now they are reporting a new trade line with the old one still listed as "wrote off or debt paid thru insurance" That also happens to be my oldest TL too since 10/2002I disputed it online ( probably should have GW instead) so I'll report with the results after the CB investigation

[haulingthescoreup]

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@mrmagic9799 wrote:
I too debated the same thing, I have a student loan that defaulted , well I got back on track and brought it current for the last yr and a half. Now they are reporting a new trade line with the old one still listed as "wrote off or debt paid thru insurance" That also happens to be my oldest TL too since 10/2002I disputed it online ( probably should have GW instead) so I'll report with the results after the CB investigation

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Is this from a FICO score report, or from somewhere else?

That's a new one on me. I know that it's not a FICO negative scoring factor, but maybe it's just a descriptor on the TL.

[Anonymous]

Lenders are not just looking at score... I would want the charge off gone from my reports. I'm sure CO's can prevent you from getting a lot of prime cards.

[llecs]

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@Anonymous wrote:

I'm sure CO's can prevent you from getting a lot of prime cards.

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+1

[laz98]

i'm really interested in what direction my scores will move once my derogs fall off next year.  it seems i have hit a ceiling, so i'm hoping that they will go up.

[Anonymous]

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@laz98 wrote:

i'm really interested in what direction my scores will move once my derogs fall off next year.  it seems i have hit a ceiling, so i'm hoping that they will go up.

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When my last Derog fell off I gained 83 points respectively. I have heard of others who have reported higher and lower, and several have also said no increase and or lost points because of AAOA.