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Surprised by score increase on a settled chargeoff

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Greenivy
New Contributor

Surprised by score increase on a settled chargeoff

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......

Message 1 of 5
4 REPLIES 4
cashorcharge
Community Leader
Super Contributor

Re: Surprised by score increase on a settled chargeoff

Congrats on the jump!! 

Message 2 of 5
AndySoCal
Valued Contributor

Re: Surprised by score increase on a settled chargeoff

@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 20,000 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 SDFCU auto CLI. 6/24 5000 to 20k

Message 3 of 5
FireMedic1
Community Leader
Mega Contributor

Re: Surprised by score increase on a settled chargeoff

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!


Message 4 of 5
SouthJamaica
Mega Contributor

Re: Surprised by score increase on a settled chargeoff


@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.


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 708 TU 714 EX 715

Message 5 of 5
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