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So I'm currently working to rebuild my credit. I've managed to PFD all my collections and PFD 2 chargeoffs.
I still have 6 charge offs, I'm trying to negotiate PFD, however it's seeming unlikely.
due to these my utilization is 101%. How much of a score increase can I expect by paying all these off to zero?
All baddies are ~4 years old .
scores are 550-560
only open account is an amex optima that I pay down to between 0-10% utilization monthly.
also once paid off is it possible to get good cards/ mortgage etc...while the old paid charge offs are still on my report?
One charge off card is like having an open maxed out or over the limit card even though its closed. So its hammering your util %. Once they are all paid or settled. They will have to report a $0 balance. Then it will no longer affect your util. But the CO in itself will still ding you till its gone. Its hard to pinpoint an exact point gain. Average around here is 20-40pts +/-.
Thank you Firemedic.
So it is possible to get FICO into the mid/upper 600's with the chargeoffs still reporting?I'm going to pay them all off now, seems to be the best option.
I've been trying to negotiate PFD's but the remaining ones seem very unlikely to do so. I was lucky enough that Amex and a credit union deleted.
Ok, so today I paid off all my remaining chargeoffs (4) , once they report my utilization will drop from 101% to 3%.
I'm hoping for a nice big score boost 🤞🏻
Are the charged off accounts still with the original creditor and do you know if they are reporting monthly?
Yes and yes. All were with original and continuing to update.
I have only one open account that I've been paying in full each month, however due these chargeoffs my utilization was 101%.
I previously paid in full 7 accounts for deletion, however these last 4 wouldn't do PFD, so I settled these, in total paid 41k on 83k of debt for these 4.
feels great to have it all done, I'm just hoping for a good score increase now.
Once they are all settled or paid and it reports to 0 balance, you should see a really nice bump. After its paid you should get a couple more cards or try for another Amex once your Optima turns 1 year old.
@sjt wrote:Once they are all settled or paid and it reports to 0 balance, you should see a really nice bump. After its paid you should get a couple more cards or try for another Amex once your Optima turns 1 year old.
Thanks.That's definitely what I'm hoping for, and yes my optima turns 1 year in august, I'm hoping this along with my spend and Payment history over the year with the optima will be enough to get Amex plat and gold
Ok so all of my payments to zero out the charge offs have now reported. Although all my reports are the same, the scores vary quit a bit w/ TransUnion being much lower than EQ and EXP.
old scores prior to payoffs:
EQ-581
TU-545
EXP-549
new scores after payoffs:
EQ-637
TU-613
EXP-645