When you satisfy the debt, you are not "paying the charge-off."
Taking and reporting of a CO relates to a prior accounting action they took, which is unaffected by later status of the debt, whether paid or unpaid.
It stays unless they choose to delete.
However, in my opinion, regardless of any credit scoring implications (or lack thereof), there is a huge benefit to paying a debt after it was charged to profit and loss.
Reporting a CO is, for all practical purposes with respect to the consumer, placement in their file of the very derogatory statement that you are expected to stiff the entire debt. Not a very favorable factor in a future manual review by other creditors.
By paying, you show that you do pay debt when able.
It negates much of the negative connotation attached to a charge-off, which says you are expected to pay nothing.
If settled for less, there is less mitigation, as they can then report that you did not pay the entire debt you obligated.
Better than remaining as showing no payment, but settled for less still represents statement by the creditor that they took a loss by lending to you.
It is always best for future credit impact to pay a debt after CO, and if you do, to avoid the special comment of paid/settled for less.
If you settle and get their agreement not to report paid/settled for less, your CR will then appear the same as if the debt had been paid in full. It is the next best thing to getting a PFD.
