Fico 9 and charge offs

[Anonymous]

I have a couple of charged off accounts, one with Affirm for 1600 and another with World Finance for 800. I understood that paid collections don't impact FICO 9 negatively so I am wondering if I should go ahead and pay these off? Navy Fed uses Fico 9 and that's my credit union. They recently approved me for a 20k card in spite of the charge offs, (both from 2019). They are both on my Experian and Equifax reports.

Fico 8               Fico 9

TU-690             TU 668

EQ-625             EQ 624

EXP 650          EXP 595

[FlaDude]

In post 6 of this thread @Anonymous suggested that only medical paid collections were ignored:

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/FICO-9-much-lower-than-FICO-8/td-p/6273204

[OmarGB9]

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@Anonymous wrote:

I have a couple of charged off accounts, one with Affirm for 1600 and another with World Finance for 800. I understood that paid collections don't impact FICO 9 negatively so I am wondering if I should go ahead and pay these off? Navy Fed uses Fico 9 and that's my credit union. They recently approved me for a 20k card in spite of the charge offs, (both from 2019). They are both on my Experian and Equifax reports.

Fico 8               Fico 9

TU-690             TU 668

EQ-625             EQ 624

EXP 650          EXP 595

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Are they charge offs only still showing the unpaid balance? Or do you mean they were charged off and then sold to a collection agency? There's a difference.

[Remedios]

Charge offs aren't collections.

They will impact your score as long as they remain on your credit report.

9 is supposed to *ignore* paid collection accounts, and score less harshly unpaid medical collections. 

If your charge offs eventually become collection accounts, you will have a double whammy, CO and CA related to the same account.

That hurts a lot, so it's in your best interest to make some kind of payment arrangements, not because they will be removed from your credit report, but because you can make a lot worse if they do end up in collections. 

Ignoring them is probably the worst thing you can do. 

[M_Smart007]

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@Anonymous wrote:

I have a couple of charged off accounts, one with Affirm for 1600 and another with World Finance for 800. I understood that paid collections don't impact FICO 9 negatively so I am wondering if I should go ahead and pay these off? Navy Fed uses Fico 9 and that's my credit union. They recently approved me for a 20k card in spite of the charge offs, (both from 2019). They are both on my Experian and Equifax reports.

Fico 8               Fico 9

TU-690             TU 668

EQ-625             EQ 624

EXP 650          EXP 595

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NFCU pulls Trans Union .. despite giving you a Equifax FICO9 Score.

[Anonymous]

Even if a lender typically pulls X bureau for apps and provides a Y bureau score monthly on the account, it's reasonable to believe that those monthly SPs of Y bureau can still be used in part for their lending decisions since it's additional data at their disposal.  One could even argue that the Y bureau data is actually more useful to the lender since there would be months and months of it rather than just the single moment in time snapshot of X bureau data.