Paying a Charged Off Acct

AllCredit · ‎04-02-2017

I have a charge off that will fall off of my credit reports in June of this year. I want to pay it because it is with NFCU, I honestly thought I couldn't do anything about the charge-off but I've been reading on here that with NFCU, you can and should. I will be calling them in the AM to find out the amount, but I want to know will paying it before it falls off my credit report work to my disadvantage? Just trying to figure out if I should pay this month or wait until it falls off my reports. Thoughts?

medicgrrl · ‎04-02-2017

It shouldn't be to your disadvantage, and may possibly increase your scores because 1) it will be paid 2) it will be excluded from your utilization now.

EQ 778 EXP 782 TU 729

sjt · ‎04-02-2017

@medicgrrl wrote:
It shouldn't be to your disadvantage, and may possibly increase your scores because 1) it will be paid 2) it will be excluded from your utilization now.

+1

Paying the charge off will get you off the Navy Federal Blacklist, stop the suppression of your credit score by zeroing out the delinquent balance.

American Express: Platinum Charge, Optima, Business Gold, Delta Business Reserve, Business Cash, Business Plus
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture X Visa Infinite
Chase: Freedom U Visa Signature, CSR Visa Infinite
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity Visa Signature
Credit Union: Cash Back Visa Signature
FICO 08: Score decrease between 26-41 points after auto payoff (11.01.21) FICO as of 5.23, EX: 812 / EQ: 825 / TU: 815

AllCredit · ‎04-03-2017

Okay so I spoke with NFCU the total is right under $3K, so I will definitely be taking care of it this month. I was worried that if I started makeing paymetns or soemthing like that it would allow it to report longer.

Thank you both very much for the advice!

Anonymous · ‎04-03-2017

Plus getting off of NFCU blacklist and reestablishing good standing with them could go a long way as many people use them to rebuild.

A1Credit · ‎04-03-2017

I saw close to a 30pt boost to my scores when I paid off my charged-off accounts (I had two) if that helps and gives incentive.

***Gardening 3/29/2018 until 9/25/2018***

FICO 8 Scores: EQ~692 l TU~657 l EX~669

sjt · ‎04-04-2017

@AllCredit wrote:
Okay so I spoke with NFCU the total is right under $3K, so I will definitely be taking care of it this month. I was worried that if I started makeing paymetns or soemthing like that it would allow it to report longer.

Thank you both very much for the advice!

Keep us posted.

On a side note since the C/O is scheuled to fall off in June 2017, have you tried calling the credit bureaus to get a early deletion?

American Express: Platinum Charge, Optima, Business Gold, Delta Business Reserve, Business Cash, Business Plus
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture X Visa Infinite
Chase: Freedom U Visa Signature, CSR Visa Infinite
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity Visa Signature
Credit Union: Cash Back Visa Signature
FICO 08: Score decrease between 26-41 points after auto payoff (11.01.21) FICO as of 5.23, EX: 812 / EQ: 825 / TU: 815

Anonymous · ‎04-04-2017

If you pay them, they get updated and then it resets the clock right?

rmduhon · ‎04-05-2017

Nothing resets the credit reporting exclusion period, aka clock. It's based upon the DoFD (Date of First Delinquency).

AllCredit · ‎04-05-2017

@sjt wrote:
@AllCredit wrote:
Okay so I spoke with NFCU the total is right under $3K, so I will definitely be taking care of it this month. I was worried that if I started makeing paymetns or soemthing like that it would allow it to report longer.

Thank you both very much for the advice!
Keep us posted.

On a side note since the C/O is scheuled to fall off in June 2017, have you tried calling the credit bureaus to get a early deletion?

No I never thought about disputing it, since it is in fact mine...what would I say is the reason for the dispute?