Re: Surprised by score increase on a settled charg... - myFICO® Forums

Greenivy · ‎11-08-2022

So I recently paid a chargeoff (settled for less than owed.) I assumed that my score would drop when I did this due to it basically now showing new activity on a dormant chargeoff......but I've gained 10-15 points across all bureaus......

cashorcharge · ‎11-08-2022

Congrats on the jump!!

AndySoCal · ‎11-08-2022

@Greenivy Was the charge off account a credit card? If so the score increase may have been due to credit utilization and if the card was over the limit. That is a guess.

FICO Scores XPN v8 802 V2 831 (SDFCU) TUC 803 v8 EFX 807 (10/2023)
Discover 09/90 19,000, JCPenney 10/2008 4,700 US Bank Cash 12,000 Citibank Custom Cash 5/2015 11,100 State Dept. FCU 15,000 06/2023 , 02/2024 Redstone FCU Signature VISA 10,000 Banking: Ally Bank Credit Unions: Lafayette FCU Fortera FCU State Department FCU Pelican CU

Pelican State CU Redstone FCU

FireMedic1 · ‎11-09-2022

Settled or paid it has to reflect a $0 balance and will no longer affect your aggregate util %'s. Wait till the CO falls off. Then you'll see even bigger gains if that was the only CO. Congrats!

SouthJamaica · ‎11-09-2022

@Greenivy wrote:
So I recently paid a chargeoff (settled for less than owed.) I assumed that my score would drop when I did this due to it basically now showing new activity on a dormant chargeoff......but I've gained 10-15 points across all bureaus......

Cool. Congratulations.