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How much does chargeoff affect rating and score?


Carlos
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$700 charge off.

Attempted to pay it but agent at OC got very, very nasty with me causing me to hang up.

bottomline is that status will show paid in full - charged off

which as I understand is just as bad as charged off alone.

if so, based on the attitude and demeanor of agent why should I pay this off. I can focus my efforts somewhere else if this does not affect my score.

-Carlos

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$700 charge off.

status will show paid in full - charged off

if so, based on the attitude and demeanor of agent why should I pay this off. I can focus my efforts somewhere else if this does not affect my score.

-Carlos

Exactly! which is the main reason for the goodwill letters. You write them and tell them exactly this and offer to pay with removal from credit reports. But do it in WRITING.

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I have sent a couple good will and settlement letters over the last few months all of them ignored.

OC is VZ I am thinking that they are so big that they don't need to deal.

Only response I got from them was by calling. Now that I have re-focused their scanner on me I have I put myself at risk for a judgement?

Once again they are so big I don't see why they would waste the time. Unlike some CA who would need this amount to affect their bottom line.

-Carlos.

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Guest jeeptravel

Same for calculating scores, but not the same for applying for major credit like a house, boat, or car. The loan officer will be glad to see it is paid off. They will not go through on a loan with a 700 charge off that is not listed as paid. I know because I just went through that. So take heart my friend that it is at least marked paid. Good luck with the good will letter.

jt

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Good point jeep.

curious as to what rate they gave you with a sub-600.

I am in the same category, based on the my fico simulator (@ bankrate.com)which keeps nailing me until this discrepancy hits the 2 yr mark.

http://www.bankrate.com/brm/fico/calc.asp

Actually there is no specific line item to specify CO so I tried a mix of

() beyond 90 days late and/or

() reposession, bk, etc.

-Carlos

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I can't give a specific answer on how it affects the score. But here is what happen to me.

I have 5 accts that were COs and settled for less than fulll balance.

When I started checking my scores, 3 were still listed as having a balance due. When I finally got them all to report a $0 balance, my scores started to go up. They are still going up 6-7 points per month which may be from using my 2 good accts and paying in full each month.

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Vader,

your post is consistent with the way fico simulator @ bankrate treats me.

24 months x 6-7 pts can easily raise my score 140 or so pts.

With this in mind best thing to do would have been to pay this charge off as soon as possible.

This is the one instance where I have been mislead a bit by the info on the board, in that charge off is thesame whether paid or not.

I am still upset over my original phone conversation with the agent however seems as if its time to pay up and wait.

Carlos.

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Carlos

you are right. having a balance due on a CO will hurt your scores more than having one that is settled.

In my case, 6 months ago, I had 6 accts that were COs and 4 still showed a balance due even though I had settled them. I disputed the accts and got the amount due to be $0 on all of them. (one thing to watch, once you agree on a settlement, the reporting companies do not automatically update your acct to show a $0 balance.)

When the accts were all settled and still had a balance, I saw little movement in my score. As i got each acct to report $0 balance owed, the scores made big moves up.

When I started requesting the balance to $0 in May,

my FAKOs 611 616 629

now 707 692 670

there were no other changes to my accts, so you can see the effect of having a balance due on a CO.

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