Help...I need a 1 point increase

[Anonymous]

I need to increase my equifax credit scores by 1 point in the next month.  I have a chargeoff on my file from 1/04 for $216 last reported in May 08, will paying this off now help or hurt me.  All my credit cards shows a zero balance.  I have 1 installment loan for $3500 with a balance of $3443 and a collection for $2432 from 11/04. Nothing is going to age or expire. Where will my money best serve me.

Thanks

[CreditAble]

crockett2 wrote:

I need to increase my equifax credit scores by 1 point in the next month.  I have a chargeoff on my file from 1/04 for $216 last reported in May 08, will paying this off now help or hurt me. 

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I personally wouldn't touch the charge off for 1 point. I wouldn't chance the unknown. Nobody can guarantee if your score will go up or down.

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crockett2 wrote:

  All my credit cards show a zero balance.

 I have 1 installment loan for $3500 with a balance of $3443 ......

Where will my money best serve me?

  I would charge enough on one credit card to show a closing balance of $200-$250, but no more than 6% of the card's credit limit. Have 0 balance on all other cards. With my credit profile the score would go up by 3-6 points

  I would also pay as much as possible to reduce the installment debt. $750 or possibly $1,000 should help a lot. Any substantial amount that you can afford should be ok since you only need 1  point. Generally less than 80% still owed on an installment loan should gain a few points.

  Are you sure that you only need 1 point? Even if your consumer (purchased) FICO is 1 point short, you might not get the same score pulled by the lender.  

Message Edited by CreditAble on 09-19-2008 06:30 PM

[GFer]

Honestly, you would probably LOSE points for paying it off, as it would update and seem to FICO as being more current!

Of course, on manual review paying the collections looks better, but if you going for points...

Charge something to bring your balance between 3% and 7% on one of your cards. Really---depends on how many cards you have. If you have 6--charge small amounts on 2. You don't want more than half of your cards to report a balance, though.

This in and of itself will probably give you the boost you need.

[Anonymous]

Very small balance reported on at least 1 CC. Just to show activity in the revolving debt area.

[Anonymous]

Assuming you are below 10% on utilization, and only showing balances on half your cards or less, I would do nothing. One point is within the range of random noise (fluctuation) in scores anyway, and all other things being equal, your score will rise as the collections recede into the past.