Amex charge off question

[Anonymous]

Hey, quick question. Looks like your AmEx is in good shape, as were all of my accounts before I got sick in 2013-2015 and couldn't work. Anyway, my AmEx had a balance less that $2500 but now with $2945. Still reporting monthly (jan 2021) now one month as a charge off but not closed I guess because the balance is still showing with my active credit card accounts.  My question is this, should I pay off this charge off which is killing my utilization by keeping it at 25% since it won't fall off until August 2022? They are actually contacting me to payoff the other CO with $2005 balance which drops off in April 2021. This comes with the note that I would be considered for another AmEx Optima card application if I am eligible. 

Ok, I do have to admit that I have watched may too many YouTube videos that say don't pay charge off or collection agencies. 

Thanks in advance.

[Remedios]

@Anonymous I've separated your question from an unrelated thread and I've changed the title to avoid confusion. 

If you have other negatives you wish to discuss, let me know and I'll move your post to Rebuilding subforum 

[thornback]

Yes, if you are able you should pay it to eliminate the utilization and prevent future negative updates to the tradeline and allow your scores to recover. Also, if you want to ever extend your relationship with Amex beyond the Optima card, paying what you owe them will go a long way.  They may not be contacting you for payment at this moment but that doesn't mean they never will. 

And those YouTube videos have offered poor advice.  Paying chargeoffs and collections-- even if a PFD is not possible, is the only way to stop the bleeding (constant tradeline updates and potential legal action w/in SOL) for the years they remain on your reports.