I know that the paying up a charge off is not supposed to raise your score that much but my husbands score is 606 so anything over 620 is fantastic. However, I also know that FICO is influenced by having high balances and going over the limit. The charge off is being reported as going over the limit of an already maxed out card because of close to 1000 dollars in late fees. If we pay off the charge off after negociation will our credit score go up and if so how many points based on the fact that we have lowered our balance to zero? (This is a hypothetical assuming that no negoctaions for deletion of the negative entry would be successful.) We will take anything. We then will look for a home in two years.
Also, I was shocked to hear that someone finally got an old account deleted with late payments thinking it would help the FICO score but it actually made it drop 69 points because she lost an old trade line. In my husbands case the charge off is an account from 1993. Since it is a charge off should we try to get the trade line completely deleted or would we be better off trying to reage the account and getting some of the negative items removed? Which would be beter for the score? Thanks Diane