Personal loan question

[Anonymous]

I got into some financial trouble back in 2015 on a personal loan that I got behind on. During the financial issues I was facing the personal loan was in the process of being charged off, while I did work out a lower monthly payment with them. I have been on time ever since then and never missed a payment. I recently checked my credit report and noticed that it is listed as charged off/now paying. Is there anything that I can do about that? Does this help me or hurt me in the long run? I want to pay back my debt and have been, but I am confused about how the charge off/now paying either hurts or helps? Any advice would be appreciated.

[Creditaddict]

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@Anonymous wrote:

I got into some financial trouble back in 2015 on a personal loan that I got behind on. During the financial issues I was facing the personal loan was in the process of being charged off, while I did work out a lower monthly payment with them. I have been on time ever since then and never missed a payment. I recently checked my credit report and noticed that it is listed as charged off/now paying. Is there anything that I can do about that? Does this help me or hurt me in the long run? I want to pay back my debt and have been, but I am confused about how the charge off/now paying either hurts or helps? Any advice would be appreciated.

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Charge off is not good even if now paying.  When they lowered the payment, did they mention writing off part of the debt or just extending the term more?

The bad mark from the charge off is almost or is over 2 years old now so it's hurting you a lot less but i would still try to talk with the company and see if they would remove that mark on it to just paying as agreed. the chances aren't very good they will but it's always worth a try. otherwise just work on getting it paid off or if your credit is pretty good now get a new personal loan to pay this one off.

[Anonymous]

The company extended the term to pay off at the new rate. Just not sure what to ask the company from here or if I even can because they listed as charge off/now paying. Thoughts on what to do? Has anyone ever had this problem and what did they do to help their situation?

[RobertEG]

The important status is the Current Status, which reflects its status only as of the last reporting update.

The reporting of the charge-off will continue regardless of whether the account remains delinquent or is returned to pays as agree status, and will thus continue to affect scoring regardless of current status. 

Even if you are paying, if the amount being credited is not sufficient to overcome the prior total deficiency in payments, then the account will continue to have a delinquency status.  Paying will reduce the balance, but will not change the current status of a non-delinquency status, such as paying as agreed.

Technically, FICO will continue to view an account that has been charged-off as having a longer delinquency period when an update is made and the current status is not yet a non-delinquency status.  That appears to be your situation, and thus it will likely continue to effect scoring until you have paid the deficiency.