A charge-off is made when a delinquency reaches the stage where it is determined that the consumer is not likely to pay the debt.
The account is almost invariably closed at that point, so paymenet is not going to result in update to pays as agreed.
Taking a CO does not relieve the consumer of continued obligation for the full debt. It is a required accounting measure.
If the consumer pays a deliquent debt, the current status is updated to paid.
However, the prior derogatory status of charged-off is retained under a code called the Payment Rating, and the reporting of the CO is also retained under the Payment History Profile. Payment does not remove the reported CO from the consumer's credti report or from scoing.
You then have a closed account that no longer has a current delinquency status, but still retains the derog reporting.
While paying the debt wont help your score, it satisfies the debt, thus removing the possibility of further damage.
If still within SOL, the creditor can sue an attempt to obtain a judgment.
The creditor can refer the delinquent debt to a debt collector, or sell the debt, either of which is likely to result in the addition of a collection to your credit report.
Finally, unpaid delinquent debt alone, regardless of score, can be a reason for denial of any new credit.
How old is the debt, as reflected by your date of first delinquency on the accounts that were charged-off?
That is a primary factor in determining next steps......
