To those who have paid collections and charge offs--Date of Last Activity

[LoveToGod]

Hello,

Okay, I know it drops your FICO if the date of last activity is updated from paying a derogatory item. My question is from your experience, how many points did you lose for 1 Single Item?

[TheRoadBack]

Hello,

Okay, I know it drops your FICO if the date of last activity is updated from paying a derogatory item. My question is from your experience, how many points did you lose for 1 Single Item?

It depends on what the rest of your cr looks like. And Fico keeps there scoring methods sacred so it is anybodies guess. What does the rest of your cr look like?

[LoveToGod]

It depends on what the rest of your cr looks like. And Fico keeps there scoring methods sacred so it is anybodies guess. What does the rest of your cr look like?

I have about 9 accounts discharged from a BK 3.5 years ago. I have 2 collections, one paid charge off, and one unpaid charge off which is the one that I am looking at.

The variation is that on Equifax I only have one collection, and this charge off in question is showing a zero balance there, but a balance of $281 on the other two.

I have a car loan for the past 10 months that I never paid late on, and I refinanced it with my credit union. I only have 2 late payments with one credit card that I have had for about 4 years that I managed to maintain since the BK. I have between 10 to 28 inquiries depending on which CR you look at.

I have several credit cards that I just acquired from last month and this month, and yet that did not tank my score and the new accts are showing already on the reports, they still came up a little even with the new accounts I took on. I have about maybe 30% usage on EX & TU, and probably more like 60% on EQ.

In reality, I would like to pay it and get it over with, but I am afraid of what will happen to my FICO score. It is finally starting to come up.

[Ahntara]

"...drops your FICO if the date of last activity is updated..."

Perhaps, but it's the 'date last reported' combined with any (number of) datafield(s) that causes a drop in score. The amount of the drop depends on when the TL was last updated along with numerous other factors. That's why no one can provide an estimate.

Paying off derogatory accounts benefits your CR by showing future creditors that you took responsibility for your debts. Unless you plan to borrow or seek a new insurance policy soon, you should have time for your score to recover. So, don't let that be the determining factor in this decision. If you need to borrow soon, do so prior to paying this off.

With several other derogs on your report, plus a fairly recent BK, this one item isn't going to make that much difference. Make your decision based on what you want to do, not what is going to happen to your score.