Does anyone have experience with paying off a past due balance and can tell me what exactly it does to your credit score? I assume "paid zero balance" is a lot better than "unpaid" but just how much better? Thanks in advance
If the account is listed as a charge-off or collection with a past due balance, you'll likely see NO score increase. Paid charge-offs and collections are serious dings - paid or unpaid. If it's an open account like a car loan or credit card, you'll still have the lates showing, even though you're caught up with your payments. In the eyes of a mortgage lender, the fact that the account(s) are paid makes a big difference. But in the eyes of FICO, you're screwed either way!
Actually, I got a 2 point increase..so did DH...we tried HIPAA payment, what a joke, but anyway, we did get 2 points apiece
