The way that I would read it is that your account went to collections and was charged off. You paid the balance AFTER it went into collection and was charged off. The creditor was the one that cancelled the account as opposed to the debtor (you) closing the account. It is my understanding that having a creditor close the account is viewed as negative (lowers your score, but not sure by how much), as is the collection and charge off, of course. However, if viewed by someone reviewing your CR for a loan, they may see it as you being responsible for an outstanding debt and paying it. They may overlook the fact that you allowed it to go into collection in the first place. It just depends on the lender.
Starting Score: 634 EQ-FICO (4/20/12) 579 EX-FAKO (4/30/12) 629 TU-FICO (5/6/12)
AZHeather wrote:The way that I would read it is that your account went to collections and was charged off. You paid the balance AFTER it went into collection and was charged off. The creditor was the one that cancelled the account as opposed to the debtor (you) closing the account. It is my understanding that having a creditor close the account is viewed as negative (lowers your score, but not sure by how much), as is the collection and charge off, of course. However, if viewed by someone reviewing your CR for a loan, they may see it as you being responsible for an outstanding debt and paying it. They may overlook the fact that you allowed it to go into collection in the first place. It just depends on the lender.
it went into collections and everything i paid it in full plus fees. it wasnt reporting right for the past 2 years on EQ so its being fixed by cap1 and the CSR said sorry for it.
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