Hello
I am trying to figure out what the impact of my making payments on a 5 and a half year charge off might be on my fico scores.The CCwas charged off in 2010. It has not been updating; but, did update in 2014 when I disputed it. The dispute comment is still on the credit reports. My fico scores range from 720-730 right now. TU is higher than the other two because for some reason they deleted the tradeline. The balance is being factored into my overall utilization at this time.
I am now in a position to pay the debt and am going to start a payment plan with the original creditor next month. I am trying to gauge how much my score will drop when the account starts to be updated again monthly. With the CO having not updated monthly for so long I am afraid that I might get a very large drop because fico will score it as a new charge off.
Does anyone have any ideas on this?
Starting Score: 599
Really hard to say unfortunately. My experience with FICO 8 and recent vs. older negatives suggests you might lose on the order of 30ish points on FICO 8, but not much on some of the other scores. I absolutely don't know if your CO will fall into that category when talking 2014, though I do know there's a breakpoint for some deqlinquencies at the 6 month mark and I saw a similar one with a tax lien and scoring so I'm guessing there likely would be in your case.
CO's suck from a reporting perspective, and you may get points on the revolving utilization side of the algorithm for paying it off. On the plus side your DOFD on that one is probably coming up in roughly a year?
Thanks for your reply!
