Surprised by score increase on a settled chargeoff

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 820 V2 831 (SDFCU) TUC 795 v8 EFX 819 (05/2023) FICO 8 Bankcard
Discover 09/90 19,000, JCPenney 10/2008 4,700 US Bank Cash+ 12,000 Citibank Double Cash 5/2015 11,100 Capital One/Walmart 3/2022 3,000 SDFCU 15,000 06/2023 Banking relationships Discover Bank and Lafayette FCU Quorum FCU State Department 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!

Homeowner Sept 2020. 2021 Explorer ST Chase 3.1%. Sharing my rebuild after BK from learning here. Started 540's. FICO 9 801 as of 05/03/2023. I stayed around to pay it forward for those who helped me back then.

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.