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Charge off account

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New Visitor

Charge off account

I have a charge off account from US bank from three years ago. I am in a position to pay it completely. Because of it my score is hurting
Will that help improve my FICO score ? Can it be removed from my credit history after payment
How much time it takes from paying to see the improvement in score ?
I am planning to buy house in next six months
Any insight is appreciated
Message 1 of 7
6 REPLIES 6
Established Contributor

Re: Charge off account

You could always try to negotiate a pay-for-delete scenario. I don't know how much it would boost your score but I do know mortgage lenders dont like to see unpaid derogatory lines on a credit report. Sorry I can't be more helpful. Good luck!
Starting rebuild July 2019 EX 501, EQ 512, TU n/a CCT Fico 8 scores
Message 2 of 7
New Visitor

Re: Charge off account

Thank you for your reply
Message 3 of 7
Community Leader
Mega Contributor

Re: Charge off account


@Fghouri wrote:
I have a charge off account from US bank from three years ago. I am in a position to pay it completely. Because of it my score is hurting
Will that help improve my FICO score ? Can it be removed from my credit history after payment
How much time it takes from paying to see the improvement in score ?
I am planning to buy house in next six months
Any insight is appreciated

There will be very little scoring improvement at first, but once you pay it, the updates will stop and in time your scores can start recovering. 

US Bank will not remove charged off account, but will update to a "Paid" status. 

 

With that said, six months is very short in terms of *credit time*, so if you're looking at score improvement, you may need to adjust your timeline a little bit further out

 

Good luck 

Message 4 of 7
Regular Contributor

Re: Charge off account

I got a decent bump on mtg scores when I paid a charge off. But everyone’s report and history is different. If you want to buy a house in my opinion you need to pay it sooner not later to let the payoff age on your report.

Any other CO or derogatory?
Starting Score: 652/644/654 (March 7) and spouse 649/647/602
Current Score: 725/726/719 (Jan 7 and my spouse is 731/715/721 (Jan 7)
Goal Score: 720


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Message 5 of 7
Super Contributor

Re: Charge off account

If the account wasnt sold to a collection agency and had a balance and then you paid it off. You could gain some points. It would be at 0% util then. Thats about the only way to get some points. Main thing is it will quit reporting neg each month.





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC @ 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 6 of 7
Valued Member

Re: Charge off account

How much of a bump did you get? 


@DGOATS1 wrote:
I got a decent bump on mtg scores when I paid a charge off. But everyone’s report and history is different. If you want to buy a house in my opinion you need to pay it sooner not later to let the payoff age on your report.

Any other CO or derogatory?

 

Message 7 of 7
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