@kcos194 wrote:I have a charge-off that I'm making monthly payments on. It's the only CO or CA on my report, other derogs are student loan lates with the most recent late being 1/2018. The CO has a $465 balance on it. DoFD is 8/2019 so this is staying on the report until 2026. What kind of score increase can I expect from this when I pay it off?
I have a little extra money this month and I can either pay this off in full, or spread it out over my other cards to decrease utilization a bit. I want this thing paid off ASAP though so I'm leaning towards just zeroing it out before it posts again on the 15th.
Thanks
perhaps a tiny bit, it depends if the balance on your CO is still being counted against your total utilization or not.
I agree with putting the extra money towards your CO though and trying to get that to 0 as soon as possible and then working towards getting the rest of your credit down.
Best part it will quit updating monthly as a CO. That helps some. But with lates and balances on other cards not knowing the %'s. Hard to tell. Though it will reflect you paid your debt settled/PIF for the fututre.
@kcos194 wrote:
@FireMedic1 wrote:Best part it will quit updating monthly as a CO. That helps some. But with lates and balances on other cards not knowing the %'s. Hard to tell. Though it will reflect you paid your debt settled/PIF for the fututre.
It stops updating as a CO immediately upon payoff? I thought it would still update as a CO until it fell off the report. Going to be mortgage shopping in late 2023/early 2024 so that's good to know.
No more CO status. If you pay off the account either in full or for less than the full amount owed. The balance on the account will drop to zero. No more calculations into your aggregate util %'s. The status will change from “charge-off” to either “paid in full” or “settled in full,” but the account will remain on your credit file till 2026.
@GZG wrote:
@kcos194 wrote:I have a charge-off that I'm making monthly payments on. It's the only CO or CA on my report, other derogs are student loan lates with the most recent late being 1/2018. The CO has a $465 balance on it. DoFD is 8/2019 so this is staying on the report until 2026. What kind of score increase can I expect from this when I pay it off?
I have a little extra money this month and I can either pay this off in full, or spread it out over my other cards to decrease utilization a bit. I want this thing paid off ASAP though so I'm leaning towards just zeroing it out before it posts again on the 15th.
Thanks
perhaps a tiny bit, it depends if the balance on your CO is still being counted against your total utilization or not.
I agree with putting the extra money towards your CO though and trying to get that to 0 as soon as possible and then working towards getting the rest of your credit down.
Agreed.
@FireMedic1 wrote:
@kcos194 wrote:
@FireMedic1 wrote:Best part it will quit updating monthly as a CO. That helps some. But with lates and balances on other cards not knowing the %'s. Hard to tell. Though it will reflect you paid your debt settled/PIF for the fututre.
It stops updating as a CO immediately upon payoff? I thought it would still update as a CO until it fell off the report. Going to be mortgage shopping in late 2023/early 2024 so that's good to know.
No more CO status. If you pay off the account either in full or for less than the full amount owed. The balance on the account will drop to zero. No more calculations into your aggregate util %'s. The status will change from “charge-off” to either “paid in full” or “settled in full,” but the account will remain on your credit file till 2026.
I'm not so sure about your statement that it will no longer have "CO status". I think you're wrong about that.
Paying off a charged off account does not remove it immediately from your credit report. Instead, the creditor will update the account payment status to reflect "paid charge-off." The status will be updated to reflect that it is paid, but the account will remain on the report for seven years from the original delinquency date, or initial missed payment that led up to the account being charged off.
https://www.experian.com/blogs/ask-experian/can-paid-charged-off-account-be-removed-from-report/
@SouthJamaica wrote:
@FireMedic1 wrote:
@kcos194 wrote:
@FireMedic1 wrote:Best part it will quit updating monthly as a CO. That helps some. But with lates and balances on other cards not knowing the %'s. Hard to tell. Though it will reflect you paid your debt settled/PIF for the fututre.
It stops updating as a CO immediately upon payoff? I thought it would still update as a CO until it fell off the report. Going to be mortgage shopping in late 2023/early 2024 so that's good to know.
No more CO status. If you pay off the account either in full or for less than the full amount owed. The balance on the account will drop to zero. No more calculations into your aggregate util %'s. The status will change from “charge-off” to either “paid in full” or “settled in full,” but the account will remain on your credit file till 2026.
I'm not so sure about your statement that it will no longer have "CO status". I think you're wrong about that.
I checked my past reports, my CO's were still reflected as a CO with a comment that it was paid, but they stopped monthly reporting the CO from when it was paid
