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I've heard that paying off charge offs won't make

Date: Sun, 03/13/2011 - 12:18

Submitted by Joeboctor
on Sun, 03/13/2011 - 12:18

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Total Replies: 8


I've heard that paying off charge offs won't make a difference to ur credit score. Most of my co are at lleast 5yrs old. I currently have 2 small credit cards and a car loan. Should I just keep making my payments on time with current debt and hope time will help or try to pay co as well? Thanks


There is one aspect of paying a charge-off that can affect credit scoring.
Accounts, both open and cloed, still reporting a balance, contunue to be included in your percent utiliazation calculation until the balance reaches $0, then it drops from calculation of % util. If the CL on the card was high, and the balance low enough to result in a low % util, then it might, in fact, be helping your % util
Then, once the balance is paid, you would loose the CL in your overall % util calculation, which again, if a high CL, might have a negative affect on overall utilization.


lrhall41

Submitted by Lian on Sun, 04/03/2011 - 05:49

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