Charge offs

[Anonymous]

If I begin to make payments on charge offs that are being reported as a negative monthly, would this further hurt my scores? Myfico simulators show score improvement. Are these simulators at all accurate?

[RobertEG]

When an account is derogatory and the creditor or debt collector updates, it advises that the account remains delinquent up to that date.

Yes, that affects scoring.  It effectively extends the date of your period of delinquency.

Once it reaches paid, the account is no longer delinquent, and it begins to age in scoring impact

The charge-off will, of course, become excluded no later than 7 years plus 180 days from DOFD, so will thereafter have no adverse scoring impact.

[Anonymous]

To RobertEG's point - it's important to make sure they report the correct paid in full date. I paid a CO in full and they did not report it as PAID for another 2 months. (I made a single payment so it was easy for me to prove date of payment)

[RonM21]

Nice point that can be overlooked. That is very imortant to keep track of when it was paid.