can someone explain charge-offs and how they affect credit score?

[shasta]

OK, maybe i still do not understand how credit scoring works.

My credit scores have been mired in the low 600's for about 3 years or so. Currently, I am at 675 across the board (my fico).

I have one item listed as a collection. it was paid in full and it states "last activity, january 2008".

Next, i have 4 credit cards listed under "accounts". Those credit cards went through the cycle, 30 days, then 60 days late, etc. It then went to charge-off status. They were then paid in full. They are listed as "potentially negative items". They are showing last activity as June 2008.

Now, even though they are paid, this is hurting my credit score, correct? Also, do they fall off 7 years from the last activity date, which in this case would mean, June 2015?

I have tried pay for deletes, to no avail.

Any suggestions?

[09Lexie]

******Req move to Rebuilding Forum****

[guiness56]

Unfortunately a charge off is a major delinquency and impacts your score for 7.5 years.  Paid or not,

A CO is an accounting term that creditors use when they think they will never recieve payment.  They write off (charge off) the debt in their books.  The CO does not change after payment.  It will always be a charge off.

These accounts will be excluded no later than 7.5 years from the DoFD.  The first time you were delinquent and never brought the account current before the CO.