Does paying a charge off =score increase?

[gagirl82]

Can anyone tell me if paying a past due charge off balance down to zero raise credit scores? If so by how much?

[tomfromrictmame]

Unfortunately a Charge Off, whether paid or not, is still considered a major derogatory mark and will be scored the same.  The benefit of having it paid, is you can move on from the obligation, and under a manual review of your report, this may do you some good.

[titanofold]

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@tomfromrictmame wrote:

Unfortunately a Charge Off, whether paid or not, is still considered a major derogatory mark and will be scored the same.  The benefit of having it paid, is you can move on from the obligation, and under a manual review of your report, this may do you some good.

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+1

You can write GW letters about the account asking them to delete the TL. I've done this with a utility and they've deleted my CO TL.

[gdale6]

As stated already paying a CO is no better than having an open CO. If the CO is past your states SOL for legal actions the only reason to pay it off would be to obtain a mortgage. Paying the CO will bring its status date to current date and it will drop your FICO score as it looks "new" in the eyes of FICO.

Adding: You can always pay it off after it drops from your reports if you are concerned about the BL and it can be done without any further affect to your CRs

[guiness56]

If the CO is a CC debt and is being factored into your utilization, yes, you could see a score increase once paid to 0.  But the CO will still be there and it is a major derogatory.

The only time to worry about it being bought to a current date and dropping your score is if it has not reported in a long time.  If it reports monthly there would be no such score loss.

[gdale6]

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@guiness56 wrote:

If the CO is a CC debt and is being factored into your utilization, yes, you could see a score increase once paid to 0.  But the CO will still be there and it is a major derogatory.

The only time to worry about it being bought to a current date and dropping your score is if it has not reported in a long time.  If it reports monthly there would be no such score loss. YES I FAILED TO STATE THAT

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[webs0082]

The only time to worry about it being bought to a current date and dropping your score is if it has not reported in a long time.  If it reports monthly there would be no such score loss.

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 Really? I always thought that paying a CO would make it current and then it would drop your score. If the CA is already reporting monthly, then it won't drop? If so, best news ever. I have 3 CAs reporting, but they are all reporting monthly, so if I settle with them, my score wouldn't drop anymore?

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[guiness56]

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@webs0082 wrote:

The only time to worry about it being bought to a current date and dropping your score is if it has not reported in a long time.  If it reports monthly there would be no such score loss.

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 Really? I always thought that paying a CO would make it current and then it would drop your score. If the CA is already reporting monthly, then it won't drop? If so, best news ever. I have 3 CAs reporting, but they are all reporting monthly, so if I settle with them, my score wouldn't drop anymore?

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No

[gagirl82]

Thanks everyone!

[irep88]

so  basically the only way to benefit from paying a charged off is if you PFD? how about collections?