The fact that it was charged-off does not change due to payment of the delinquent debt.
The creditor is entitled to report the delinquency status under your payment history profile as either the days it was delinquent for that prior month/yr, or simply as CO. Ultimate payment of the debt does not remove that prior reported delinquency history, and thus the fact that it was charged-off will remain.
However, once you do pay the debt, then thereafter there will be no continued, additional showing under payment profile of CO for any month after the debt is paid, so the delinquency begins to age in time since it was removed from delinquency status.
While paying per se does not remove the derog effect of the delinquency for prior months, it does prevent the period of delinquency from continuing to get longer, and thus does provide some future scoring benefit over non-payment.
Additionally, if still within SOL, paying will terminate any possibility of civil action and a resulting judgment.
