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Do Charge Offs still count towards payment status if they are being reported monthly?

OniStringer
Valued Member

Do Charge Offs still count towards payment status if they are being reported monthly?

Just out of curiosity, how do charge offs actually report? Still late payments?

 

I let all my stuff go back in 2015-2016, and I'm about a year out from my last "estimated drop off date" so this is a huge year for my rebuild, I'm sitting around 600, a few cards, and I have like 1 hard pull in the last 2 years. So I'm just waiting for everything to fall off before i go on a little app spree, but i am curious because i did go for the Apple Card and it mentioned i had a recent past due account, but I haven't missed a payment in about 5 years minus my charge off accounts still getting updated monthly. 

 

Thanks for any info, new to the community and really excited to finally get my credit back on track . 

10 REPLIES 10
moto4man
Regular Contributor

Re: Do Charge Offs still count towards payment status if they are being reported monthly?

Welcome to MF!

 

A reporting CO will most definitly hit you very hard.  Once paid... First it'll stop reporting as a balance "past due", and begin its aging process.  Secondly, it will reduce your UTI by that amount, which is also giving you the dinger.   I recently went through a very near situation as yourself.  See the link to my progress and what taking care of that CO did for me and my score.  What is your DOFD?

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Rebuild-Guidance-Please/td-p/6493705

 

There will more than likely be some folks to chime in with some more detailed step for you.  But it's safe to say, if you follow that link to my original thread, you will clearly see what it will do for you very quickly.  Good luck!

 

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Message 2 of 11
OmarGB9
Community Leader
Super Contributor

Re: Do Charge Offs still count towards payment status if they are being reported monthly?

Yes if it's unpaid and updating monthly, it'll continue to ding you every month until paid off or until it falls off.

 

A CO counts as a maxed out account with zero credit limit and it factors into utilization. 


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Message 3 of 11
jrwa81
Regular Contributor

Re: Do Charge Offs still count towards payment status if they are being reported monthly?

A CO will have a pretty significant impact on your score and any reporting balance on the CO will be included in your DTI, which can really hurt you when applying for something like a mortgage, auto loan, etc.  If you pay off the CO, it will still remain on your reports until it ages off, but the balance will reflect as zero and will no longer hurt your DTI.

Message 4 of 11
OniStringer
Valued Member

Re: Do Charge Offs still count towards payment status if they are being reported monthly?


@moto4man wrote:

Welcome to MF!

 

A reporting CO will most definitly hit you very hard.  Once paid... First it'll stop reporting as a balance "past due", and begin its aging process.  Secondly, it will reduce your UTI by that amount, which is also giving you the dinger.   I recently went through a very near situation as yourself.  See the link to my progress and what taking care of that CO did for me and my score.  What is your DOFD?

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Rebuild-Guidance-Please/td-p/6493705

 

There will more than likely be some folks to chime in with some more detailed step for you.  But it's safe to say, if you follow that link to my original thread, you will clearly see what it will do for you very quickly.  Good luck!

 


This thread helped me a lot ! Thanks! I am one year away from every derogatory falling off my account , some are even coming off this December. Most next march, I'm probably going to wait. Couple charge offs have been paid, 2 are $1k each, don't see a point to pay 2k when it disappears in literally a year. 

 

DoFD on all accounts were January - March 2016. I com0pletely let everything go looking forward to this time next year to finally have it all go away.


 

Message 5 of 11
FireMedic1
Community Leader
Super Contributor

Re: Do Charge Offs still count towards payment status if they are being reported monthly?

Who are the 2 creditors you speaking of? As it gets closer to fall off date they may as a last ditch effort go the CA or the lawyer route.




Homeowner since Sept 2020. Sharing my experiences after BK from learning here. Rebuild to recovery from the @ 540's.
Message 6 of 11
OniStringer
Valued Member

Re: Do Charge Offs still count towards payment status if they are being reported monthly?


@FireMedic1 wrote:

Who are the 2 creditors you speaking of? As it gets closer to fall off date they may as a last ditch effort go the CA or the lawyer route.


USAA and DISCOVER

Message 7 of 11
joltdude
Senior Contributor

Re: Do Charge Offs still count towards payment status if they are being reported monthly?

I'd be a little concerned about Discover and them taking you to court still... Not sure about USAA

-J

 

Message 8 of 11
moto4man
Regular Contributor

Re: Do Charge Offs still count towards payment status if they are being reported monthly?

One of the things on this board that I've learned (not experienced) is that the closer the time comes to them falling off, is when they're comin in hot....  Be wary!

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Goal Score: 750


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Message 9 of 11
Invictus2905
New Contributor

Re: Do Charge Offs still count towards payment status if they are being reported monthly?

Is this even legal? My understanding is that in most states the statute of limitations to sue someone is prior to the 7 year mark so how would a creditor come after someone at 6.5 years if the SOL date was at 5 years. 

Im curious because I have a CO that is due to fall off in June and really don't want to deal with something unexpected. I'm in Florida and though the SOL to be sued is 5 years. 



Message 10 of 11
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