FP Charge Off Pay In Full vs. Settle

[Angelmom9905]

w  I have a CO from FP on my CRAs.  DOLA is 12/08.  We are trying to get a mortgage and my broker says it has to be paid.  I have a few questions.

1.  Does it matter if Should I pay in full ($512) which will mark the account $0 paid in full or the settlement amount offered ($300) which will mark the account $0 settled for less than full amount?

2.  Will this increase or decrease my score?

3.  Is it included in my utilization?

It is reporting as a Charge Off as shown below:

Reported 8/12     Last Activity 12/08      Opened 10/08     Limit $275    30(1) 60 (1) 90+ (06/12, 12/10) Past Due $512   Payment $26E     Balance $512

Type/Rate: REV Credit Card 09

I have tried PFD and had no success, my broker just said to pay it, doesn't feel settled or PIF matters, but I don't want to mess this up.

Thank you all for your help/advice.  These forums have taught me sooooo much!

[Shogun]

As far as FICO scoes go, it doesn't matter if it's PIF or settled.  There might be a difference to the UW however.  But I doubt that because it is so old.

[Angelmom9905]

Thank you Shogun!  Thats my thought too. Better to use the $ saved towards closing costs (fingers crossed).

[slund5499]

I had a FP charge off from 2011. I tried disputing this account with the CRA. I Called and wrote emails to FP Eo and offered PFD.....No go

I wrote GW letters to EO with no sucess.

Ultimately, I just paid the account in full electronically through my bank. Waited 24 hours and then called to confirm they received, accepted and posted the payment.

Account balance is zero and customer service shows it paid in full.

Been 2 weeks and the CRA still have not updated the credit report to show zero balance and paid.

I even got an email from Admin Asst to CEO validating that the account is paid in full and has a zero balance. Within the letter, they disclosed that they would not respond to any future emails relating to this account.

I do not know how they will report to CRA, but I am tempted to call the CRA and offer the email as proof the account is paid in full with a zero balance. Maybe the CRA will remove the charge off status.

ANy thoughts or ideas from the forum?

[RobertEG]

A two week delay is not uncommon.  They most likely did not or will not actually submit to the CRA until their next regular reporting cycle.

I would give it at least a month of patience.

As for sending to the CRA, they normally will not enter changes to your credit file based on communications from you, but rather wait until they receive formal instructions from the creditor.  The likeliness of the CRA deleting based on payment of the debt is slim to none, as such deletions are directly contrary to their policy of no deletions based on payment of the debt.