It actually happened to me before. I paid a charge off but left it on my credit report instead of a deletion. It bothered me so I did a Goodwill and got it deleted. As soon as it was gone, my score dropped because it was actually one of my oldest accounts reported.
In the short term, losing those points hurt but in the grand scheme of things, it left me with a clean slate to rebuild my credit upon.
A paid chargeoff on a person with a very low score or no history seems to add points but there is a point of diminishing returns. Once your score is higher, those paid charge offs start pulling down your score as a derogatory.
