My experience with mortgage scores was that I saw the largest jump when my last CO was settled. SIGNIFICANT. It barely budged as the others were paid off. Trickled up as I paid off the COs and they hit the CBs. But when the last one reported $0 - BOOM. Example - EX2 went from 624 to 674 when the last CO reported settled/$0. I need to caveat this as like you I was diligently paying down all my revolvers, but I was well ahead of you. I was getting close to AZE2 at that point. So, I would temper my expectation if I was you unless you think you can get your overall Util below 9% when the last CO is settled. I would also warn you it took some time depending on the OC to get the last CO reported as settled. It was like watching paint dry!
In general, utilization is a huge factor on the mortgage scores, no debate on that. However, there is some debate on how COs are treated from a Util perspective. Are they "maxxed out card"? Some think so, but we really aren't sure. I tried collecting DPs. In the end, COs are extremely penal - can say that for sure.
Additionally, one other thing to consider - open COs report every month and suppress your score for that alone. Once you settle the last one, you lose that hit for a new CO report. That is postivie score impacting, too.
Good luck and please share what happens.
I'm also in the same boat -- I am currently at 35% util based on my settled COs which have not yet updated. They should update in the next 3-4 weeks and report as $0, at which point I will be at AZEO. Will report back with score bump, if any, when that happens.
It's worth noting I still have collections on my report, which I know also make a big difference. I've paid all but 2, but all 5 of them are still reporting until the 3 paid ones are deleted in the coming weeks/month.
I guess were all in the same boat. Paid off my last one last week, waiting on it to report. Following this.
Started: 5/2018 EX8 468 TU8 479 EQ8 451
@Anonymous wrote:I have a question is it worth it to pay a charge off last updated in June 2019. Will it help or make it worse. Its not a large balance not being reporteded monthly like i said last updated in 2019.
Sleeping bears and all that, I get it. There are 2 things to consider from my experience with this. First is that some mortgages will require that you pay off or settle CO debt completely. It all has to show $0 because otherwise it is something that they can come after you for down the road with litigation. The second thing is that the balance is not a straight translation to impact your score. It may not be a large balance, but it is still impacting your score significantly in that the algorithms see it as a "maxxed out" or "over" your credit line.
There is really no down side to settling or paying it off from a score perspective. So, unless you are trying to get away with not paying it at all, you should pay or settle it. Remember, that whether you settle it for less or pay it in full, there is no diffference score wise. That said, if you do want to stay in the good graces of the creditor, you should seriously consider paying it in full.
Hope that helps. Good luck!