Re: Should I pay off my charge-off accounts?
06-02-2008 11:27 AM
Thanks for your response. Majority of all my accounts are no longer with the OC. I would say just about all of them are in collections as charge-off status. I'm wiling to pay all my charge-off status accounts in Full, and can do that within the next 2 to 3 months. I've already paid 11K towards my charge-off accounts. I still have 16K left. I do not want to do any payment plans, I'd rather just pay off the charge-off accounts so they will be closed and settled. However, will this hurt my credit score even more if I did that? I heard if you pay off charge-off accounts it affects you negatively more then positive. Like I said in my previous post that majority of my charge-off accounts will fall off my report by 2011. My problem is, why would I pay on a charge-off account when my credit is already damaged when I can just wait 3 years for it to fall off my credit report and not have to pay anything? The only reason why I feel I should pay off all charge-off accounts is because I want to try an purchase a home within the next year or two and most lenders will not give you a loan with unpaid/unsettled charge-off accounts. Has anyone experienced paying off charge-off accounts and bettering their credit score any? I mean i've been paying on my bad debt for 8 months now and i've seen a 30-60 increase in my credit score. I have tons of charge-off accounts! Please give me your advice if paying off these charge-off accounts will help me or worsen me as far as bettering my credit score. If it will better my credit situation I will pay off these charge-off ASAP. These are my credit scores as of today. I use the 3-1 from True credit to monitor my credit. TU - 530 EX - 547 EQ - 561 As you can see its pretty terrible, but it was a lot worse 8 months ago. If I can get my score over 600 by the end of the year I would be extremely pleased. Thanks for your help v/r James