Should I pay a charge off for credit score improvement?

[Anonymous]

Hi!

I am currently continuing my quest to raise my credit score. I can't find to seem the answer to this question on a previous post, so I figured I'd just ask :-)

I have 2 charge off accounts and I am thinking about either settling or paying the debt. Either option, I will ensure the OC updates the tradeline to state Paid and changes the balance amount to 0 as well as the past due amount to 0. My question is, 1) has anyone done this before? 2) If so, did it have a great positive effect on your credit or did it not make a difference at all?

One thing to note, is that upon getting all 3 of my credit reports, I noticed that on both charge off tradelines, only late payments are reported under EX. TU and EQ do not report any late payments at all. Is this a positive for me? Will this make my credit score raise higher once the balances are reduced to 0?

If more information is needed, please let me know. Thanks for the help!

[Rebuilder2016]

It will not help your score just because it is paid off but it look better to creditors. Best option is pay for delete.

[Anonymous]

^^^ +1

[RobertEG]

Current score is not the only score issue.

An unpaid charge-off can become worse.

The creditor can either refer to a debt collector or sell the debt.  In either case, the debt collector an report a collection, which will add a major derog.

Additionally, if sold, you can no longer pay the OC or pursue a PFD for the charge-off.

If the debt is still within SOL, they or a purchasing debt collector could also initiate civil action, seeking a judgment.

Satisfaction of the debt can avoid further damage......