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How do credit card charge offs work in terms of affecting credit score

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How do credit card charge offs work in terms of affecting credit score

Hi all,

 

If I know a charge off from an old credit card is going to fall off in the next 12 months, will paying it off have any impact on my score? Will the 6 years of FP (failure to pay) still be on my credit report even after the 7years and the charge off falls off?

 

Is there anyway I can try to dispute it with the bank to try to get it deleted? The amount is for a service charge which should not have been there in the first place. I didn't know they had put that service fee on my account after I had paid the balance so I thought the balance had been zero. Also the service fee was charged in error. 

 

With these two facts (1. charge off falling off in 12 months and 2. service fee should have never been charged in first place) what is the best course of action if I want to raise my credit score quickly?

 

Thank you so much.

Message 1 of 6
5 REPLIES 5
Community Leader
Mega Contributor

Re: How do credit card charge offs work in terms of affecting credit score


@fitlife wrote:

Hi all,

 

If I know a charge off from an old credit card is going to fall off in the next 12 months, will paying it off have any impact on my score? Will the 6 years of FP (failure to pay) still be on my credit report even after the 7years and the charge off falls off?

 

Is there anyway I can try to dispute it with the bank to try to get it deleted? The amount is for a service charge which should not have been there in the first place. I didn't know they had put that service fee on my account after I had paid the balance so I thought the balance had been zero. Also the service fee was charged in error. 

 

With these two facts (1. charge off falling off in 12 months and 2. service fee should have never been charged in first place) what is the best course of action if I want to raise my credit score quickly?

 

Thank you so much.


Hi and welcome to the forums 

 

Paying it would have impact on your score if it's still updating. Payment would stop updates.

Once it reaches the seven years, all negative info will be removed, leaving only positive history. So no, Failure To Pay wont be there any longer. 

 

As far as dispute goes, sadly you have really nothing to dispute there. " I did not know" is not a grounds for negative info removal. 

If you chose to dispute, most likely it will come back verified and further drop your scores.

If you have a proof you could submit to CRAs that service fee was never supposed to be charged (would be in the terms and conditions at the time you applied), dispute away. 

 

I see  no way to quickly raise your score because you wont be able to get PFD from the OC in most cases. 

 

 

EX 754 EQ 774 TU 752


Message 2 of 6
Super Contributor

Re: How do credit card charge offs work in terms of affecting credit score


@fitlife wrote:

Hi all,

 

If I know a charge off from an old credit card is going to fall off in the next 12 months, will paying it off have any impact on my score? Will the 6 years of FP (failure to pay) still be on my credit report even after the 7years and the charge off falls off?

 

Is there anyway I can try to dispute it with the bank to try to get it deleted? The amount is for a service charge which should not have been there in the first place. I didn't know they had put that service fee on my account after I had paid the balance so I thought the balance had been zero. Also the service fee was charged in error. 

 

With these two facts (1. charge off falling off in 12 months and 2. service fee should have never been charged in first place) what is the best course of action if I want to raise my credit score quickly?

 

Thank you so much.


I would challenge it if you believe it was wrong.


Total revolving limits 719k (592500 reporting) FICO 8 scores: EQ 735 TU 782 EX 746
Message 3 of 6
Super Contributor

Re: How do credit card charge offs work in terms of affecting credit score

What was the amount of the service charge?

Looks like you have two threads going for the same topic?
High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 4 of 6
Member

Re: How do credit card charge offs work in terms of affecting credit score


@Remedios wrote:
Once it reaches the seven years, all negative info will be removed, leaving only positive history. So no, Failure To Pay wont be there any longer. 

This is something I've never been clear on. If you pay a CO and the status goes from CO to current doesn't that reset the DOFD?

Message 5 of 6
Community Leader
Mega Contributor

Re: How do credit card charge offs work in terms of affecting credit score

It does not go to "current". It updates to reflect paid. Nothing resets DOFD. 

EX 754 EQ 774 TU 752


Message 6 of 6
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