You need to get those 2 cards that over limit (especially the one WAY over the limit) paid off immediately. I wouldn't be surprised at all if they closed the card because of that. In addition, if they keep it open, your rate will most likely be sky high. No, you cannot expect 10 pts for each 10% when you are that far over the limit, although you will definately see a huge jump from getting it back down, and under the limit.
How does a $1,000 CL card get a $2k plus balance?
I would focus on being a LOT more responsible in the future or your credit history is going to suffer. Expect AA.
Edit: Hold on, so your only open account is the $2,200 balance on the $1,000 limit?
Once closed cards have their balance paid to 0, they no longer effect your utilization percentage.
Starting Score: 627 EQ, 621 TU - 11/15/08I am not trying to lecture, was just trying to offer you some feedback on what you can expect and what is hurting you.
No one can answer your three specific questions because each person will receive a different score boost from paying down debt depending on what bucket you are in and the remaining items on the report.
First, let me say that if the account is charged off, once you pay it off completely, it will leave you with 0 remaining revolving credit which will hurt your scores. Also, a paid charge off has the same ding as a unpaid charge off.
However, if the CO balance is factored into your revolving balance, as it is, paying it down will help in that regard. Going from 220% to 110% should have 0 effect. The fact that you are overlimit is costing you roughly 25-30 points... but it doesnt matter how far over the limit you are... it's all the same at that point.
Going from 110% to under limit gets you those 25-30 points back. And going down to zero may net you 60-70 pts roughly? You may get 100 points back after it is down to 0, but the fact that you will have 0 revolving credit and a very recent major derog (CO) will keep your score way down for a while. If possible, try to open a new revolving store card or something to give you some more revolving lines.
Utilization % does not technically go over 100% for scoring purposes. Once you go over 100%, you are dinged an additional 25-30 point for being over the limit, but it doesnt matter if you are at 101% or 301%... its the same for scoring purposes. The 10 points per 10% only applies when you are under 100% and varies by person.
What I meant by the first statement is, you stated that the charged off credit card is your only credit account that was open. Once it is paid off, you won't have any remaining open, positive credit accounts. This will severely ding your score as well.