@Anonymous wrote:First thank you for taking time a reading my post. I am in the process of rebuilding my credit from years of irresponsible personal finances. I have a joint loan with my wife from a credit union with which we still have an auto loan that is about to be paid for. We have a charge-off for a $3000+ personal loan. The last payment on the loan was in 3/2011 so it is still within SOL in my state. I would like to be responsible and pay it off to improve our score since we are wanting to purchase a house within the next (few) year(s). Our scores are both in the 560-570's and we still have a few other minor amount collections to work on.
What would be our best plan of action about this specific charge-off?
Welcome to My Fico 
You would attempt what is known as the PFD (Pay for delete) Here you will find some examples of PFD letters:
http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519
