Re: Does Paying an Old Charge-Off Help FICO: Yes or No?
11-10-2012 06:07 AM
Paying off any debt has its good and bad. First, as far as the scoring, it will initially decrease due to it resets the seven year clock and now becomes a current bad debt,, but will show paid. The impact of the "new" debt will decrease more rapidly as time goes on than a unpaid one.But your starting at the beginning again. The only way to really pay a debt that is more than 3 years old and be in your best interest, is get a WRITTEN agreement for the debt holder to delete your listing in exchange for agreed payment in full. Otherwise, you are better off not paying and wait for the seven years when it must be removed by law. The system is flawed where it discourages responsibility.