Does paying a charge off =score increase?

[SunriseEarth]

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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.

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+1000

[SunriseEarth]

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@gagirl82 wrote:
Can anyone tell me if paying a past due charge off balance down to zero raise credit scores? If so by how much?

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I just paid off a CO last month.  I haven't seen an updated FICO score since it reported, althought CK FAKO went up 16 points.  I'll keep ya posted.  

Yes, if your CO is still reporting every month and is greatly impacting your UTIL, you would see an improvement by paying it off.   But there are definitely some situations (at least for the sake of your score) where it's best to leave well enough alone. 

[kaylord84]

I paid off 2 charge offs  last summer and it actually lower my score 30 points YMMV

[irep88]

i too paid a CO and my credit score didnt change at all

[G_kwr]

No, Paying off a Charge off does not raise your credit score. If you have not yet paid off the charge off or negoiated a reduced settlement you should contact the creditor to see if you pay off the debt they will remove the charge off from your report and list it as a settled account. If they agree then make sure you get it in writing. If your charged off debt has been sold to a collection agency then you may have to deal with them since the original creditor may have written off your bad debt as a tax deduction. A collection agency CAN NOT remove a charge off only the original creditor can. If you are stuck with an collection agency and they have your debt listed on your CR then you can do a pay for delete for the negioted payment for the collection account. Make sure you negiotate the debt to 20-40% of the original amount. The debt collector usually pays five cents on the dollar for your debt.

[J_G]

So I have a CO that was sent to a Collection agency. But both the OC and CA are reporting on my report. So if I settle with CA does OC have to delete they're report as well? What should I do here?

[bman1029]

I have the same situation. I believe the only way to get the CO removed would be GW

[Thechallange]

I just recently paid an 1 year old charge off from capital one i saw a 13point inCrease it was being factored in to my utilization, i paid it because i was being sued and if i didnt pay such a small amount  id have a new judgement to deal with. 

[titanofold]

When a CO affects your utilization, like a CO'd CC, paying it will poptentially increase your score.

[DenverVandal]

I paid off a collection that I had with Cap1 and this month is updated to paid and my score jumped 30 points. Maybe something else triggered the gain but I was happy to see it!