fire228 wrote:For example, If you payoff a credit card you get so many points or if you have 2 late payments you decrease so many points, if you have a hard inquiry you decrease so many points, etc.
No, the scoring models aren't quite so straightforward. For FICO scoring:http://www.myfico.com/crediteducation/w ... score.aspx
The impact of a given change will depend a bit on your credit profile.
fire228 wrote:Just asking because I have 3 credit cards that went into a "Charge Off" state after 4-5 late payments. The balances are around $600 for each card and I now have the funds to pay them off, but how much on average would it help? What defines how it would help? Should I pay it in full or pay a settlement for less?
Paying won't help much, if any. You want removal and you want all of them removed. Carefully research before taking any action as it is possible in some cases to make matters worse. There are many resources out there on how to deal with collections.
Derogs like collections impact Payment History (see the link I provided) and tend to have a significant impact as long as you have any on your reports. That's why you want removal of all of them. A single derog will hold you back. It's not just about scores or approvals but also the terms that you stand to qualify for.
fire228 wrote:Is there a credit baseline for scores or how does it all work??
There are many scoring models used by creditors out there and they evaluate report data differently. The link I posted is a general guide for typical weights for FICO scoring. However, even FICO models don't all weigh report data identically or have the same scoring ranges. On top of that, while most creditors use a FICO model, not all do.
Additionally score is just one consideration that a creditor will use in making its decision. The creditor/product has underwriting criteria that are not accounted for by a credit score. Your entire credit profile will be considered against the underwriting criteria to determine approval, limit, rate, etc.