Once a creditor has taken a charge-off, it can thereafter appear in your credit report in several ways.
Only one of those ways is removed by paying the debt, which is the current status that the account/debt remains delinquent.
After taking a CO, the creditor can report the static amount of the debt at time of charge-off. That reporting thereafter remains even if paid.
For any month where the debt remains delinquent after they have taken a CO, the creditor has the option of reporting the payment history profile delinquency status for those months as CO rather than the normal, for example, 150-late format.
That payment history profile remains as factual prior data, and is not removed after the debt is no longer delinquent (i.e., paid).
The current status, which represents only a snapshot of the status as of the date of any updated reporting, can continue to be reported as CO if the debt remains delinquent as was subjected to a prior charge-off.
However, after the debt is paid, the current status is no longer one of any dellnquency, and thus the current status will show a non-delinquency status, such as Paid, or Settled for Less.
Paying thus removes CO from reporting as current delinquency status, but does not remove the static reporting of the prior CO as either the amount at time of CO or as the prior monthlly delinquency status in your payment history profile.
