scoring question?

[willswim]

I have a question about fico scoring. Everything I've read states that paying old collections or charge offs will usually not improve your fico score. I recently had an old charge off update on my transunion credit report from an $1842 balance to a correct zero balance. All of the original negative information remained the same and only the balance updated on this closed account, which is from 2011 and not set to age off my report until 11/18.  My transunion score jumped from a 603 to a 625 which was a 22 point increase and this was the only change from the previous month.

Can anyone explain what happened? Thanks for any input!

[medicgrrl]

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@willswim wrote:

I have a question about fico scoring. Everything I've read states that paying old collections or charge offs will usually not improve your fico score. I recently had an old charge off update on my transunion credit report from an $1842 balance to a correct zero balance. All of the original negative information remained the same and only the balance updated on this closed account, which is from 2011 and not set to age off my report until 11/18.  My transunion score jumped from a 603 to a 625 which was a 22 point increase and this was the only change from the previous month.

Can anyone explain what happened? Thanks for any input!

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If it was a revolving account/credit card, it may have improved your score because of utilization decreasing.  That's my guess.

[Anonymous]

What I've hears is that chargeoffs do factor in to utilization and they do report every month, so by paying them they start to age off. I just paid a settlement with cap one that was 4900, and I paid $600. I am anxiously waiting til it shows on my credit report.