Posts: 37
Registered: ‎10-18-2012

What to do on CO account

On my credit report is CO from GERCB/PAYPAL. There is a zero balance, it says charge off or collection, and closed due to inactivity, and on another closed by credit grantor. Jan 2009 and one was Aug 2010. What exactly does this mean? If I remember right, I paid a long time ago and believe it was supposed to be deleted. What do I do to get this off?

Mega Contributor
Posts: 19,122
Registered: ‎03-19-2007

Re: What to do on CO account

[ Edited ]

A charge-off is reported along the way of an accounting measure taken by the creditor pertaining to the debt.  It is their internal business.

That accounting measure is not negated by subsequent status of the debt, such as referral for collection, sale of the debt, or payment of the debt.


The creditor does not report a $0 balance based soley on having taken a charge-off.  For all intents and purposes, the debt remians fully collectible.


If a creditor reports a $0 balance on the debt, it means either that they have sold the debt to another, who can then report, or that the consumer has paid the debt to them.

Accounts are usually closed to further consumer use prior to a charge-off, and is a separate issue.


If you paid the debt while still owned by the creditor, they must update the balance to $0, but are not required to delete the fact of their prior charge-off.

If the debt was sold, and then paid to the debt collector, the OC account would already show a $0 debt owed to them, and the reporting debt collector would update their reporting to show the eventual outcome of satisfaction of the debt itself.


You can send a good-will request to the creditor, asking them to delete the reported charge-off.  There is no requirement that they do so.

Get a myFICO recommended credit card

Copyright ©2001-2013 Fair Isaac Corporation.
All rights reserved.

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.