How bad is a paid charge off?

Anonymous · ‎06-29-2007

OK I just finished paying off three credit cards. They would not do a PFD. They will all say paid after charge off. One I reopened for my utilization. The question I have is these paid after charge offs will remain on my credit report for a long time. I hope to have my scores raise by 75 to 100 points by this time next year. Are these going to hurt my chances? Can I ask them to change the designation to something else more FICO friendly?

Tuscani · ‎06-29-2007

monro411 wrote:

OK I just finished paying off three credit cards. They would not do a PFD. They will all say paid after charge off. One I reopened for my utilization. The question I have is these paid after charge offs will remain on my credit report for a long time. I hope to have my scores raise by 75 to 100 points by this time next year. Are these going to hurt my chances? Can I ask them to change the designation to something else more FICO friendly?

Paying a CO really doesn't do your score much good. Even paid a CO is still a CO. You want it gone.

Anonymous · ‎06-29-2007

So you are saying it would look the same if I paid it or not.

Anonymous · ‎06-29-2007

monro411 wrote:
OK I just finished paying off three credit cards. They would not do a PFD. They will all say paid after charge off. One I reopened for my utilization. The question I have is these paid after charge offs will remain on my credit report for a long time.

If it's now PIF then your only really option is a GW letter.

If you have not yet paid it, I would hold off and try again for a PFD.

Anonymous · ‎06-29-2007

monro411 wrote:
So you are saying it would look the same if I paid it or not.

Paid collections and paid chargeoffs do not improve your score. Sometimes your score might even dip when the CO or COLL gets paid. 7-1/2 years from DOFD they stay on your CRs. You can try for a GW delete.

MidnightVoice · ‎06-29-2007

However, see:

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=17988

The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid

chartley3 · ‎06-29-2007

I will completely disagree with both of you on the effects of paying off CO accounts. I just completed settling an old account that was a CO. Today when I pulled by reports they scored on 2 of 3 jumped between 20-50 points because that TL was now showing a 0 balance and updated to reflect settled.

Anonymous · ‎06-29-2007

chartley3 wrote:
I will completely disagree with both of you on the effects of paying off CO accounts. I just completed settling an old account that was a CO. Today when I pulled by reports they scored on 2 of 3 jumped between 20-50 points because that TL was now showing a 0 balance and updated to reflect settled.

Does it show CO and settled, or just settled?

chartley3 · ‎06-29-2007

Its listed as payment after CO and Legally settled for less then full amount. They wouldnt do a PFD so I paid the settlement amount.

Anonymous · ‎06-29-2007

MidnightVoice wrote:
However, see:

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=17988

Good info everyone. I can still stop the last payment. I might just try another PFD letter and then try one with a BK threat. But I think we are divided by our opinions of if paying a CO is necessary. Can more of the super contributors weigh in (no offense)?

Message Edited by monro411 on 06-29-2007 01:28 PM

Message Edited by monro411 on 06-29-2007 01:29 PM