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Paying charge off lower score?!

Contributor

Paying charge off lower score?!

I have a charge off that was COed in Sept 2010 and has not been reported since then. It shows a $0 balance. My questions is-- Once I make a payment and update the status next month to CO-Paid in full, will this bring my score down as it will be showing as a recent CO?

 

Someone please advise. I am super confused.

 

PS- I already know that paying the CO does not reset the DOFD. Just want to know if the DOLA / Last reported date will get updated and if that affects the score?

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Contributor

It never: Paying charge off lower score?!

It never has for me. 

 

The first CO I ever paid was for an installment loan charged off in 2009, paid it in April of this year and actually gained 5 points.

 

The second is for a CO for a repoed auto, charged off in 2007.  Actually just got the SW alert that they reported my first few payments on it yesterday and it did not have any affect to my score.

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Moderator Emeritus

Re: It never: Paying charge off lower score?!

I have seen some scores drop due to updating.  However paying this off will be the best course.  Try to PFD, and if not, PIF and then GW them.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
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