question....

[Anonymous]

Is there a difference between a "charge off" and an account that is "settled for a lesser amount"  or does it mean the same thing? It doesn't use the words "charge off" or CO or anything. It says account settled.  I think it's the same thing, but I am not sure.  The balance reflects $0 on the account. 

We are considering paying off the "settled" amount, which is about $3000.  We are hoping that if it goes to a paid in full status it will help our scores.  Thanks!

[Anonymous]

From what I have read it's pretty much the same thing. Hopefully, someone can give you a definate answer.

[Anonymous]

For scoring purposes, the presence of a CO is treated the same whether it is paid, settled, or unpaid.

[Anonymous]

Your FICO score doesn't care what the status of a charge-off or collection is.

However, humans reviewing your credit report regard a paid chargeoff/collection as being just a little less bad than a settled chargeoff/collection, which in turn is just a tad less undesirable than an unpaid chargeoff or collection.