Is it possible to pay off a CO with a balance transfer?

[biff-henderson]

Hello community,

I have been paying down a charge off from Discover over a private loan. I'm down to $5K, but don't want to wait 2yrs to have this stop actively reporting.  Based on recent apps -- oddly successful mind you, that is the biggest factory pulling down my score. I really want it gone, but can't do the lump some.  

The question:  Can I use the balance transfer convenience check from my WF Active Cash to pay it off? I know there's a 3% fee, but I'm happy paying $200 to get that to start aging off 2yrs faster.  I'm also aware that I'm trading a CO for higher utilization, but that's temporary, and fixable as I free up money each month.

Thoughts? Ideas? Am I missing anything? For that matter will Discover even play ball? Currently, the only payments they take are account debits and phone payments.

B.

[rostrow416]

It will not age off any faster.  It remains on your report for about 7 years from the date it first went delinquent.  

[biff-henderson]

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@rostrow416 wrote:

It will not age off any faster.  It remains on your report for about 7 years from the date it first went delinquent.  

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Hmmm, I was under the impression that if its paid, then its influence lessens over time and it is no longer actively reported monthly. However, if its unpaid, it get updated monthly with the current balance. In addition, whatever the maximum effect it can have on your score occurs.

Now I've pieced this together from various boards, so this may not be completly accurate. Please advise on any errors.

B.

[Remedios]

@biff-henderson Discover allows BT to be deposited to your checking account so just pick that option. 

If it's not available in your account, there is an option to request BT checks. If you cannot find it, hop on chat and ask BT checks to be mailed to you.   

SL will still be on your report, but it won't be updating so it will help in the long run since it will allow your scores to recover somewhat since there won't be updates to CO

[SouthJamaica]

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@biff-henderson wrote:

Hello community,

I have been paying down a charge off from Discover over a private loan. I'm down to $5K, but don't want to wait 2yrs to have this stop actively reporting.  Based on recent apps -- oddly successful mind you, that is the biggest factory pulling down my score. I really want it gone, but can't do the lump some.  

The question:  Can I use the balance transfer convenience check from my WF Active Cash to pay it off? I know there's a 3% fee, but I'm happy paying $200 to get that to start aging off 2yrs faster.  I'm also aware that I'm trading a CO for higher utilization, but that's temporary, and fixable as I free up money each month.

Thoughts? Ideas? Am I missing anything? For that matter will Discover even play ball? Currently, the only payments they take are account debits and phone payments.

B.

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Yes you can use that check.

[RonelTheGeek]

Yes@OP,

I've done this last year for 1 last Derog i had on my CR from Verizon, who would not delete, but i use  BT from my credit union, once the money was deposited into my account, i paid my last charge off. Sure Verizon didnt PFD, but piece of mind is that

1. it will stop updating monthly as charge off

2. it wont be resold over and over  to some junk debt buyer and hurt your scores further

3. like other may have said. your scores will slowly recover.  full recovery once the paid charge off is removed, but  this is the best option, to have the debt paid off. 

So i believe High UTIL temporary is better than having the CO sold and continue doing damage . plus maybe Discover will PFD after payment.