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

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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!! :-)

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