Confused---Paying collections and charge-offs

[Anonymous]

I know paid and unpaid collections are still collections as far as scoring goes. And supposedly paying a collection doesn't hurt your score, but when the CA updates the collection to be paid, it makes it appear to be a recent collection and does hurt your score.

However, I was told paying charge-offs do help your score. True or untrue?

Isn't a charge-off still calculated in your util?

[fused]

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sidewinder wrote:

I know paid and unpaid collections are still collections as far as scoring goes. And supposedly paying a collection doesn't hurt your score, but when the CA updates the collection to be paid, it makes it appear to be a recent collection and does hurt your score.

However, I was told paying charge-offs do help your score. True or untrue?

Isn't a charge-off still calculated in your util?

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Very good questions! If a charge-off is being reported with a balance by the original creditor it will factor in util calculations. If the charge-off is reported by a CA or other third party, attorney or law firm, it will not factor in util calculations. In some cases, not always, paying a CO reporting by an OC will help your scores.

[Anonymous]

Thank you Fused! Well explained.