Paying charged off accounts hurts credit?

[Ltown81]

Went through a disaster a few years back and stopped paying a car financed through Td. It went into repossession but they never repoed it. In mid 2021 they started to act like they had a lawyer sending me letters like they were going to sue me. By that time I was back on my feet and had my own lawyer helping me. They worked out a settlement where I paid payments on the priniple only and they forgave the interest. I made these payments for over a year on time. I recently sold the car and it was paid off based on the amount of the agreement (principle with no interest). I was excited to have this done only to find it knocked my credit score from 650 down 30 points to 620. I know before it said it was in repossession, charged off, and closed. They were however reporting the balance as reduced each month. After payoff when the score dropped, it said charged off and closed in remarks. I disputed that and now it says in remarks it says "payment after collection/charge off and paid profit and loss". When they did this my score went up a point. It also seems my payment history for this account disappeared in transunion. Is there something I am missing here? I thought paying off a large debt would help credit. 

I just paid off another loan from mariner finance that is from the same time and a charge off. It shows no payment history though I have paid it for 3 years other than the balance reduction. I am hoping nothing nag give happens this time. 

[OmarGB9]

Do you happen to have any other open installment loans?

[Ltown81]

Asside from my mortgage, I had no new accounts until the last few months when I realized my credit was at the point I could statry rebuilding and open a few starter credit cards.  Basically I had never missed a payment for 15 years and then a business I had failed and I did not pay anything for a year or two. Now income wise I am doing better than when I had the business and dealing with old credit issues as it makes sense. 

[AndySoCal]

@Ltown81 

You would need to get your credit report(s) from annualcreditreport.com.  Look at the payment history grid and find the date in which the rating for the creditor charged off the loan. The rating should be C/O. If your payment arrangement was after that date then the reporting of the account is correct.  If not you would need to submit proof that the payments started before that date. Work with the creditor first.