Credit Score after CO Settlement?

[Aaarrrgggghhhhh]

I have read a ton of conflicting information as to what immediate effect settling a CC account that was charged off several years ago will have on my credit score. Some info. says credit score will take an immediate nose dive since this several year old information with no activity will now be updated, other info. says that if the charged off account was being reported every month than the major damage has already been done and the payment will have very little negative effect on the score, and then there is everything else in between....does anyone have any first hand knowledge as to what I should expect?

 

Also, the CA told me once they received my funds they would be sending me a letter showing the now paid status of my account and that my OC would be sending an update to the CRAs within 30-60 days. The CA also mentioned that I could speed up the CR updating process by submitting the paid letter to the CRAs myself. Has anyone ever done this? I can see why in theory it would make sense, but at the same time I don't want to necessarily provide information directly to the CRAs that might make it more difficult for me down the road to get the CO removed. Anyone?

[syncracirca]

I have read a ton of conflicting information as to what immediate effect settling a CC account that was charged off several years ago will have on my credit score. Some info. says credit score will take an immediate nose dive since this several year old information with no activity will now be updated, other info. says that if the charged off account was being reported every month than the major damage has already been done and the payment will have very little negative effect on the score, and then there is everything else in between....does anyone have any first hand knowledge as to what I should expect?

 

Also, the CA told me once they received my funds they would be sending me a letter showing the now paid status of my account and that my OC would be sending an update to the CRAs within 30-60 days. The CA also mentioned that I could speed up the CR updating process by submitting the paid letter to the CRAs myself. Has anyone ever done this? I can see why in theory it would make sense, but at the same time I don't want to necessarily provide information directly to the CRAs that might make it more difficult for me down the road to get the CO removed. Anyone?

 

My scores rose when I paid off collection accounts even though they are showing as paid and closed.

[Aaarrrgggghhhhh]

Bumping for the lunch bunch

[distantarray]

 

 

 

My scores rose when I paid off collection accounts even though they are showing as paid and closed.

 

1. how old was your charged off account

2. what was your balance to debt ratio on your active credit limit

3. what was the charged off credit limits

4. when was the items charged off and what is your average age of accounts

 

those four things can change a lot, in many cases scores will drop so people explain each situation to better give people proper information.

 

If it was a newer collection your score can rise a bit especially if you had a high amount charged off and low actively opened account lines. etc factoring heavily on credit/debt ratios etc.

 

 

[jayp]

I just had a paid CO report 0 balance this week, the result was EQ+15, TU + 50, EX +80, my account was being reported past due with the last update in Jan. So i think it was hurting both with the status as well as the Util. As always YMMV

[syncracirca]

My scores rose when I paid off collection accounts even though they are showing as paid and closed.

 

1. how old was your charged off account

2. what was your balance to debt ratio on your active credit limit

3. what was the charged off credit limits

4. when was the items charged off and what is your average age of accounts

 

those four things can change a lot, in many cases scores will drop so people explain each situation to better give people proper information.

 

If it was a newer collection your score can rise a bit especially if you had a high amount charged off and low actively opened account lines. etc factoring heavily on credit/debt ratios etc.

 

 

 

Forgive my simple mind, but could a paid charge off look like a closed line of credit to some of the scoring models?