CO?

[KellyP25721]

I understand that having a CO hurts big time, but I was just wondering if the fact that I paid off the past due amount would help the score any?   It comes up as a flag in MyFico reports.

[gdale6]

Nope, a paid CO is just as bad as an unpaid CO. If you pay it the status date will come current and most likely cause your scores to drop.

[guiness56]

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@KellyP25721 wrote:

I understand that having a CO hurts big time, but I was just wondering if the fact that I paid off the past due amount would help the score any?   It comes up as a flag in MyFico reports.

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What type of account is it and when was the last time it was updated?

If it is revolving with a large reported balance, yes, paying it off can drop your utilization and help your score.

If the account has not reported monthly for a while, any activity can cause it to update to a current date making it look newer and cause your score to drop.

If it has reported each month, paying it won't hurt your score.  It won't help it either unless it is revolving.

[KellyP25721]

It was a car loan that was charged off 13 months ago with a $6K balance.  

[RobertEG]

You can pursue a request to the creditor that they delete their reporting of the CO.

i would suggest the following argument to them.

Reporting of a charge-off is, in essence, the reporting by the creditor that you are not expected to pay the debt.

In accunting terms, they have determined the debt to have become "uncollectible."

Thus, the big impact of a CO.... it informs others that a prior creditor has determined that you are likely going to sriff their debt.

By paying, that is not alone basis for deletion of their prior determination, but it can be a big mitigating factor in asking them to delete that reporting.

You show that you DO in fact honor your debt obligation, but were merely going thru temporary bad times, and paid when able.

That is drastically different from a consumer who is willing to simply stiff a debt.

Thus, I would approach the creditor with a GW request for deletion of that statement, which would better represent you as a consumer who does honor their debt.

An argument that it is in the interest of the system by more accurately reflecting you as a consumer.

[KellyP25721]

Thanks!  I'll give that a try.  I have nothing to loose.

[KellyP25721]

Well, I paid them off and for my troubles they have updated my record to show OK payments from the charge-off date up until the current date now, but they haven't shown it as paid and still show a past due balance.  Dropped my EQ score 3 points.  Waiting to see what the other two do.

[guiness56]

That isn't correct reporting.  There should be no balance or a past due.

As far as dropping your score, if it was your only open installment, that can happen.

[KellyP25721]

I agree, but am I better off trying to get it corect through them or dispute through the CRA's?

[guiness56]

When did you pay it off?  Seems a little quick for them reporting anything yet.