Will paying off CO / collections increase score?

[nmk94]

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@Anonymous wrote:

Is Client Services actually reporting to your credit? In my experience they collect on balances but they don't report to the credit bureaus. 

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You're right. I checked and Client Services is not reporting to the account. Chase is the original creditor. So I guess that means they still own the debt and CS is just the collections agency?

[FireMedic1]

Yep.

[FireMedic1]

If owner (OC) of the debt has a balance. Pay them. If there is a $0 balance from the owner (OC). They sold it to a CA and then the CA has to be paid because the owner (OC) got paid for a lessor amount.

[kflo01]

This is a great thread I was trying to find a way to figure out who to pay off next that would have the most impact on my credit score. Please let me know what you think I should pay in what order. I will list them in the order I figured made sense.

1) Credit First (Bridgestone) showing a balance of 1022/00 (settled for 500.00) even agreed to mail payment by May 12th. Been reporting monthly. Started Reporting Late Sept 2018. It is showing on all 3 reports.

2) Trident Asset Management OC was Milestone Credit Card. Showing a balance of 682.00 These guys will not move on the price. Lowest they have gone as low as $520.00. It is showing twice on all 3 reports. Once as Trident and once as the OC. Trident started reporting July 2018 the OC started reporting it late Dec 2017. 

3) Portfolio Recovery. The balance was 1180.00 but settled on 612.00. I owe roughly 300.00 on it. It is showing on all 3 reports, started reporting Jan 2018

4) First Premier account #1: Balance reporting is 1034.00. They stated they would take 500.00 when I was ready. It is reporting monthly on all 3 reports. It started reporting late Jan 2017

5)  First Premier account #2: Balance reporting is 1224.00. They stated they would take 612.00 when I was ready. It is reporting monthly on all 3 reports. It started reporting in late June 2018.

Based on the above paying which ones in which order will have the most impact on my score. 

[Anonymous]

I payed off a CO discover credit card last month and I dropped 41 points accross the board.  It showed as PAID IN FULL was in Charge off.  It also reads "New credit card account" which it isn't.  I wish I wouldn't of done that!

[nmk94]

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@Anonymous wrote:

I payed off a CO discover credit card last month and I dropped 41 points accross the board.  It showed as PAID IN FULL was in Charge off.  It also reads "New credit card account" which it isn't.  I wish I wouldn't of done that!

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This is your FICO 8? With all three agencies?

[collics]

I've been paying a Barclay charge off the lass 3 months and it has been part of my increases because as others have explained the balance had been reporting all this time and also effecting my utilization 

[Anonymous]

NMK94,

Yes, it was my FICO 8 from all 3 CB's.  Here is the breakdown of points dropped:

EQ -44

EX -41

TU -31

-AK

[nmk94]

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@Anonymous wrote:

NMK94,

Yes, it was my FICO 8 from all 3 CB's.  Here is the breakdown of points dropped:

EQ -44

EX -41

TU -31

-AK

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Hm. I wonder if anyone has insights into this. It may be a temporary hit. Was the CO reporting before as part of your revolving credit? For example, I have two COs. One still factors into my UT, so it reports as an individual account at 100%, but also adds to my total UT. It updates every month. The second account doesn't update (it hasn't since 2015) and FICO isn't using it to calculate UTs.

If you paid this card, it could suddenly show up on your account as a maxed out card, but then hopefully updates at a zero balance and then helps your score. Just speculating here...

[Anonymous]

NMK94,

Here is a little bit more information.  It was reporting as a CO the last 5 months under revolving credit.

It was a Discover IT secured card for $2500, went to CO and they closed it against the deposit.  The monthly reported balance stayed at $606 every single month and 24% utilization even while it was closed.  After paying it off through Discover's collection department, here are the things I saw:  Please keep in mind that the total points deducted came as several items at times.

EX - (-41) 'A collection listed on your credit report has been updated', Status - Paid charge off.

TX - (-19) Re:'The total balance on all your Bankcard accounts has decreased by $606.

EQ - (-24) Re: 'A collection listed on your credit report has been updated'. Balance: $606 -> $0

           Description: Paid charge off secured credit card amount in high credit is original charge off amount.

EQ - (-12) Re: The balance on one of your accounts has decreased by $606.

There are multiple entries on different days which added up to the total points mentioned in the earlier post.

I'm not sure if this was a result of a date reset and showing a new collection status since another allert said 'new card'.

-AK