Reply
New Visitor
Posts: 1
Registered: ‎04-08-2011
0

HELP! - Pay off rest of Charge Off to improve credit? Yes or No??

I am a virgin to FICO Forums... Hello and thank you in advance!

 

I Co-signed for a BF's car loan years back and of course he totaled the car and didn't have insurance. Long story short, he junked the car and I ended up stuck with the bill. Since his credit was already shot, he didn't care and didn't pay it. (lesson learned) NEVER CO SIGN!! The remaining balance was about 5k, I talked them into settling for about 3k. At the time, I knew nothing about a charge off and thought I was doing the rite thing.

 

Now a few years later, I am (obviously) affected with a lower credit score. I am getting ready to buy a house and this is really causing problems. I called Honda Finance to see if they would delete the charge off since I paid as much as I could. No luck. Now they said if I pay the remaining balance and get a copy of the police report for total loss they would remove the charge off. 

 

Is paying the 2k worth it? I am seeing on other forums that paid or unpaid, a charge off still hurts your credit. Is there any advise out there? What do I need Honda to agree to, to make this worth paying the remainder of the loan. Can I actually get them to delete the whole thing as if it never happened?

 

Thank you so much in advance for any help!! :-)

Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
0

Re: HELP! - Pay off rest of Charge Off to improve credit? Yes or No??

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.