Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007
Re: Late payments after charge-off

jeno wrote:

If you pay off a chargeoff in its entirety will this help your credit score?


Likely no, but it depends on a couple of factors. For example, if it were a CC and that CO'd CC factored into CC utilization in a negative way, then paying it off could help your utilization and that alone can help your FICO. Conversely, if it were a CO'd CC and maybe it was CO'd because someone forgot about an annual fee, and that CC helped your util, then paying it off would increase your overall util and that can hurt your score. Another factor is the status. If it were just CO'd with no payments and had an active status of a CO, then paying it off would change the status to "was a CO" and some have seen slight improvements. It depends on when it reported last. If it were an older CO, then likely no change. If it just CO'd this month and was paid, then there might be room for a score improvement when it updates next.