@GZG wrote:is the charge off unpaid? or was it paid four years ago and the balance on it is now $0?
yeah you're going to need to pay in full/settle in full the charge off, that's why
you haven't been late since 4 years ago,
you're currently late
and that's what they see when they pull your report.
if you do it pay it and they do update your report (I imagine the $800 charge off isn't reporting monthly) it's going to ding your score, bad. regardless, it needs to be paid and it will still fall off 7 years from the DoFD
Ooooooooooook This makes sense. I thought once an account was charged off, it showed as derogatory but not as late every month. Which means it showing as derogatory AND a late payment every month. I did not know that. I'm learning here. LOL
So how will paying it hurt my credit? If thats the case would hurt it for 7 years from the date paid, lets assume today. If I leave it and don't pay it, it should fall off in 3 since its been on their for 4 years already?
I'm not trying to be dense, just trying to understand. Thank you : )
@RobDub wrote:
@GZG wrote:is the charge off unpaid? or was it paid four years ago and the balance on it is now $0?
yeah you're going to need to pay in full/settle in full the charge off, that's why
you haven't been late since 4 years ago,
you're currently late
and that's what they see when they pull your report.
if you do it pay it and they do update your report (I imagine the $800 charge off isn't reporting monthly) it's going to ding your score, bad. regardless, it needs to be paid and it will still fall off 7 years from the DoFD
Ooooooooooook This makes sense. I thought once an account was charged off, it showed as derogatory but not as late every month. Which means it showing as derogatory AND a late payment every month. I did not know that. I'm learning here. LOL
So how will paying it hurt my credit? If thats the case would hurt it for 7 years from the date paid, lets assume today. If I leave it and don't pay it, it should fall off in 3 since its been on their for 4 years already?
I'm not trying to be dense, just trying to understand. Thank you : )
The CO balance is still factoring into your utilization and will continue to do so until it's paid off. The 7 years doesn't restart, it will still be based off the date the account first went delinquent (DOFD) that led to the CO status. Once you pay it off it will report zero balance and stop reporting monthly.
If you can pay it off all at once I'd ask the collection agency if they'll settle for less.
This is great!! Thank you so much!!!
@RobDub wrote:This is great!! Thank you so much!!!
You're welcome.... I should have added that when you pay/settle with the collection agency ask them for a pay for delete. If they do, that's great. In that case the collection would get deleted, but be aware that it has no bearing on the reporting of the CO from the original lender. For that you'd have to contact them and ask for a goodwill deletion. Some have luck with it, most don't, but doesn't cost much to try.