Charge Off HELP older credit in collections. Approval for First Time Home Buyer program

[BeBop]

I brought my TransUnion credit report to my Credit Union rep. My Credit Union has a FT Home Buyer program of 100% financing. Only Stipulation is that all my Credit accounts must be in good standings. NO open collections or open charge offs

My Current TU score is 696. My EQ score is significantly lower than that. Im trying to pull my EX score but the site is giving me a hard time. It brings me to a blank page after I input my credit card info...Im NOT hitting the refresh button or reload. $15 for a score is A LOT they should have their site fixed immediately.  

I currently have a CHARGE OFF from a Capital One credit card. Im planning on paying the collection off in FULL ( paid as agreed) by the end of this month. I dont want to do a pay for deletion becuase its one of my oldest credit acounts.

My CONCERNS are:

Will paying this charge off in full tank my credit score? 

[guiness56]

That depends on a few things.  Is the CL and balance reporting?  What is your current utilization?  When was the last time the account was updated with the CRAs?

[BeBop]

Yes the CL and balance are both on my credit report. Last time it was updated was 2010 , the drop off date is 2017. My current utilization is 0, I guess. The card is charged off

[guiness56]

If the account has not updated since 2010, when you pay it off there is a very good chance your score will drop.  It will update to a new current date making it appear newer.

The fact that it is factored into your utilization could give you points and just even out the loss.

Is this your oldest account or an older account?

[BeBop]

It's just an older account. Not my oldest.

[guiness56]

I would consider asking them to remove it for payment.  What you lose in AAoA will be gained in points from the removal.  Plus your report will be cleaner.

[RobertEG]

Assuming the OC still owns the debt, if you seek a PFD, then the first decision is which reporting do you seek deletion.

In paying, you dont actually pay the collection or pay the charge-off, you pay the debt.  The prior reportings of each remain accurate, and are not negated by the fact that you have paid the debt.  They must be addressed separately from the fact that they must update those reportings to now show paid, in the case of the OC, and $0 remaining under collection, in the case of the debt collector.

If it is the collection, the PFD would go to the debt collector.  Then you would seek deletion of the CO by way or GW requests to the OC.

However, if you consider the CO to be more damaging, then you can send a PFD to them, seeking payment in exchange for deletion of the CO, and then pursue deletion of the paid collectin via GW requests to them.