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Maybe, maybe not. Credit scores are calculated based on all the information in a consumer's credit report. It is impossible to guess the exact repercussions of one item on that score, in most instances. The factor that causes the highest deductions to the score is when a derogatory item was last updated/reported on the bureau. If a charged off account is being currently reported/updated, (or that date falls within the last 12 months), this hits the score in the history category. History accounts for 35% of the score. Paying off an account like this would MOST LIKELY not cause deductions. If, on the other hand, the charge off has not been updated in some time; paying if off would make it a zero balance account as of NOW. The updated status of "paid charge off" would bring such an account within the past 12 months and would IN THIS INSTANCE cause deductions to the score. How much of a deduction would, once again, depend on ALL the informaiton showing in a consumer's report.
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Why does paying off old charge offs lower your credit score?
The only way it can help is that it makes the balances zero. Having constant balances on your cards, especially high ones, hurts your score. Pay them to zero and your score will increase
If paid will old charge off accounts with small balances raise your credit score?
Probably not significantly if at all. Even if they are paid the entry will remain on your report for the maximum 7 years. There are some circumstances under which paying off an older charge off/collection will lower your score, not raise it. The determining factor is when the account was "last reported" (by the creditor) to the bureau. If updated within the past 12 months, the account is having a significant impact on your score and paying it off does no damage. If, however, the account has not been reported recently - paying it causes it to be updated to NOW, thus bringing the date within that critical 12-month time frame. This date (reporting date or "status" date) is the date that causes deductions to your score when coupled with derogatory data, like the charge off notation.
How to repair your credit on credit cards you never paid and are charged off?
If the accounts are charged off, your credit report is going to reflect 'charged-off'. This in itself will lower your credit score. You can pay the charged off amount which will most likely show, on your credit report, that the account is a 'paid charge off'. A creditor can try and collect on the debt for up to seven years. It may be to your best advantage to pay off the debt to begin the improvement process. Long-term, responsible credit behavior is the most effective way to improve future scores. Pay bills on time, lower blaances and use credit wisely to improve your credit score over time. THE ANSWER TO THIS QUESTION IS ACCURATE FROM THE PERSON WHO ANSWERED THIS BEFORE ME. BUT, NOW LOOK AT IT IN A LENDERS PROSPECTIVE. WHEN YOU HAVE A CHARGE OFF ON YOUR REPORT THAT SHOWS THE YEAR "2000", THIS CHARGE OFF WILL AFFECT YOUR CREDIT FOR SEVEN YEARS FROM THE DATE IS WAS REPORTED. THE POSITIVE THING IS YOU DO NOT HAVE TO WORRY ABOUT PAYING THIS BILL OFF IF YOU ARE INTERESTED IN A RESEDENTIAL LOAN. FOR YOUR OWN BENEFIT AND HIGHER SCORE IT WOULD BE IN YOUR BEST INTEREST WHEN YOU HAVE THE FUNDS ,TO PAY THIS OFF. FOR A LOAN THE LENDER WILL ONLY LOOK AT THE MOST RECENT COLLECTIONS OF THIS YEAR (2006) AND REQUEST FOR THEM TO BE PAID OFF BEFORE PROVIDING A LOAN. FOR MORE INFORMATION CALL WANDA AT: 703-564-3776, OR (EMAIL) ACEVEDO_WANDA@YAHOO.COM. GOOD LUCK!!
Can having too many charge accounts or closing extra accounts negatively affect your credit score?
if you have too many open accounts and owes money, it does affect your credit score. your debt ratio is too high, and you will have difficult time applying for any kind of loans. when closing your accounts, and they are paid off. at first, it will lower your credit score, then will incrase following month or two. asian623 http://www.myspace.com/scionturboracing
What does it mean to transfer credit card balance?
To transfer a credit card balance means to use the available credit on one credit card to pay off the balance of another credit card. This is often done by credit card holders to pay back a balance at a lower rate.
How can paying down your credit cards lower your credit score?
Paying down your credit cards won't lower your scores-- but paying off and closing the credit cards will lower the scores. You want to show that your cards are not maxed out and you have plenty of room between the credit limit and the balance .
When might one get an increase in their rate on their credit card account?
You can get an increase by paying your bill on time for at least 6 months, late payments can result in credit limit and credit score decreases. You can also lower your credit utilization.
Can paying off credit card balances hurt your credit?
paying off no, closing the account yes. 6,000 owed/10,000 credit limit =60% of credit used2,000 owed/3,000 credit limit=66% of credit used=lower fico
How do charge offs affect your credit?
Charge offs will drastically lower your credit score, just like any negative item similar to collections, judgments, and liens. They will stay on your credit report for 7 years unless removed. The more money owed and the more recent the charge off the more it will lower your credit score. You can remove charge offs by disputing them to the credit bureaus. The credit bureaus have 30 days to verify the charge off or it must be removed from your credit report.
What if you want to pay your credit card off will they lower your balance?
Usually not. Agreeing on paying offf a lower balance is knowing as a settlement. This will afffect your credit score neg.
What are two ways to lower your credit score?
1. Max out your credit cards. 2. Pay your bills late. (Or stop paying them altogether.)
If I use a tax attorney to lower the amount I owe to the Irs does this result in a bad rating on my credit or are there any other adverse effects?
Your credit rating is affected by not paying your debts.Anything you can do to lower your debt raises your credit rating,so reducing a debt to the IRS would help your credit rating a lot.So long as the lawyer doesn't cost more than he saves you there's no downside,assuming he is able to do what you hire to do.
Can closing paying off credit cards hurt your score?
In Some Cases Yes It Can Lower Your Score.
What factor may lower your credit score when you have a credit card?
not paying minimum amount duelack of credit historygetting another new credit cardapplying for a loankeeping a high balance on credit cards compared to their credit limitsetc.
What factors may lower your credit score when you have a credit card?
not paying minimum amount duelack of credit historygetting another new credit cardapplying for a loankeeping a high balance on credit cards compared to their credit limitsetc.
Does it affect your credit score if you repay your credit card dues much before your monthly statement is generated?
no, but your finance charge will be lower
What happens if you stop paying on a credit card?
they will add a late fee to your bill, try and contact you, eventually lower your credit limit, and have a collecting agency contact you
