Question on Charge Offs

[Red1Blue]

Question on Charge Offs and Util. I understand Util from COs can affect the score. Does this have any effect on number of accounts in CO vs Accounts with Large debt. Does it help paying off 9 CO accounts with $18k in total balance vs. 2 CO accounts with a $45K balance ? Is it just the util that counts or amount accounts brought down to $0. Which weighs more for the score improvement ?

[Remedios]

Simplest answer...paying the last one off.
While reducing utilization may net you some points, as long as last CO remains unpaid, and is updating, scores remain suppressed.
Your COs are relatively new, so probably multiple are still reporting.

If you're planning on paying all of them eventually, do it in order that's not financially draining you. Maybe apply snowball method to COs, start with smaller ones, them move onto larger ones, just be mindful of lenders prone to engaging in litigation like Discover and Capital One.

[Revelate]

TBH we really haven't seen good data around CO's, the big thing though is their updating month to month when unpaid and everything else is kind of secondary really as Remedios so correctly stated.

I would assume that they count full monty without knowing otherewise... a CO was never one of my own credit sins and as such I don't have first-hand experience there (unlike so many other things) and none of the hardcore score trackers ever had CO's either to my knowledge.

[Red1Blue]

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@Remedios wrote:
Simplest answer...paying the last one off.
While reducing utilization may net you some points, as long as last CO remains unpaid, and is updating, scores remain suppressed.
Your COs are relatively new, so probably multiple are still reporting.

If you're planning on paying all of them eventually, do it in order that's not financially draining you. Maybe apply snowball method to COs, start with smaller ones, them move onto larger ones, just be mindful of lenders prone to engaging in litigation like Discover and Capital One.

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Hi Remedios, Thanks for your input. I am planning on paying them all off. I like your suggestion "do it in order that's not financially draining you". I am going to take life easy and enjoy the moment than worrying about the scores all the time.

By making settlements, this month I have reduced my CO debt by $14000 on 2 accounts. Still there are  other COs to settle and get them out of the way. This month I settled $13k on 3 collections with PRA and hopefully they should be off my report. I have 4 more collections to pay and get them removed from the reports. I added secure cards and they have been reporting positive history for last 6+ months.

I am doing every thing to pay off the COs / Collections and rebuild my credit. Let us see how my scores looks like next month.

I am going to try to clear about $10-15k / month in charge offs and take care of 1 or 2 collections/month. Hopefully become debt free in 6 months. Or may be take 12 months to pay them off. I am also increasing my savings for the rainy day and taking one day at a time an enjoy the life. I do agree with your advice.