I submitted a question regarding charge offs with past due balances to the Fico guy on the live Q&A mentioned in one of the earlier posts. It was suggested in one of the posts here (on CN) that if the charge off had a past due balance, then FICO wouldnâ??t age the account. Since we have been having a rather lengthy debate over this topic, I decided to ask the FICO guy himself. Here is the question and his response: Dallas, Tex.: I have several old charge off accounts that are still reflecting a past due balance. Do these past due balances prevent these accounts from aging and causing FICO to consider these as current charge offs instead of charge offs from several years ago? I know that as a negative account ages it doesn't hurt your score as much as a current negative item, but this one is a little tricky and I cannot seem to find a specific answer. Craig Watts: The aging of your credit accounts isn't affected by whether they still show a balance due. Age and amount owed are separate factors for the FICO score.
I think the arguement really is, Why when you intially pay off a charge off say from three years ago.. Your score drops.. ?? From my own personal experience and the knowledge I have gained from here an other avenues.. I have learned and it has been proven to me on my own credit report.. That paying off a old charge off, will not reage the account, rather just make the account look more recent to the FICO scoring system. An that kills your score. So what is the real motivation to pay off the Charge Off's when all that does is destroy your credit.
So what is the real motivation to pay off the Charge Off's when all that does is destroy your credit. bukethead ============== There is none. The END ************************* LB 59
