So I know it's a very common topic.
I had a car repoed 2 years ago and sold at auction. The original note was $26,000 and after the sell I had $3700 left to pay.
Well I'm aiming to buy a house next year.. going through my credit on a warpath paying all deliquents etc.
I know some say don't even pay a charge off.. but Cap One offered to note paid in full if I settled for $485 bucks. So I did! Couldn't beat the deal and didn't want to be sued.
Today it shows PAID... and my score dropped 25 points. Finally got them to 623 and boom back under 600 lol.
I have 2 other installment loans that are paid on time and doing well.
Did the score drop because the chargeoff became current?
Maybe because the balance? (3700 vs 26000) and now $0?
Because Fico hates me?
Definitely not the credit mix.. I figured paying off a giant loan would help.. nope.
(Other 2 loans are about 75% of balance paid and 50% of balance paid)
I don't mind the drop... but will it bounce back quick? I was slowly pulling the scores up and slam! So irritated.
Any advice or opinions are certainly welcome.
