How does paying charge off affect credit score?

[Anonymous]

I'm new here, so sorry if I've worded this weird. I currently have 5 charge-off/collection accounts.

1. Kohls - balance is 836 w/ 500 limit

2. Wells Fargo - balance is 746 w/ 600 limit

3. Walmart/Synchorony - balance is 847 w/ 600 limit

4. Capital One (portfolio recovery) - balance is 713 (does not specifiy limit)

5. AT&T (ERC) - balance is 357

All of these collections are from 2015. My credit score is 595 with my mid score 530, I have 6 open credit cards with 2-5 years of perfect payment history but they have a high revolving credit balance. I'm going to pay them all off later this month.

I'm planning on paying all 5 of my collections in full like asap (tomorrow). I've tried for a PFD but have not had any success. PRA said that once I pay them, they will request my account be deleted after 30 days. My question is how bad is paying all of these going to hurt my credit score? I've eard of people paying charge offs and their score just completely tanks? Will paying these show up as a "new" late payment on my credit report. I plan to buy a home this summer and can't have any late payments on my report. Do you suggest I pay in full or settle? How long does it take your score to recover after paying a charge off? And lastly, do you think this might help my credit report as the UTI on all of these account is 120% or higher.

Thank you so much for any insight!!!

[Zolomon]

If you pay down your utilization, it will definitely help.

If you pay your collections and charge-offs without a PFD, it will defintely not help. Keep trying for that PFD, contacting the creditors directly; what ever it takes. Just don't renew these negatives.

[simplegirl]

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@Anonymous wrote:

I'm new here, so sorry if I've worded this weird. I currently have 5 charge-off/collection accounts.

1. Kohls - balance is 836 w/ 500 limit

2. Wells Fargo - balance is 746 w/ 600 limit

3. Walmart/Synchorony - balance is 847 w/ 600 limit

4. Capital One (portfolio recovery) - balance is 713 (does not specifiy limit)

5. AT&T (ERC) - balance is 357

All of these collections are from 2015. My credit score is 595 with my mid score 530, I have 6 open credit cards with 2-5 years of perfect payment history but they have a high revolving credit balance. I'm going to pay them all off later this month.

I'm planning on paying all 5 of my collections in full like asap (tomorrow). I've tried for a PFD but have not had any success. PRA said that once I pay them, they will request my account be deleted after 30 days. My question is how bad is paying all of these going to hurt my credit score? I've eard of people paying charge offs and their score just completely tanks? Will paying these show up as a "new" late payment on my credit report. I plan to buy a home this summer and can't have any late payments on my report. Do you suggest I pay in full or settle? How long does it take your score to recover after paying a charge off? And lastly, do you think this might help my credit report as the UTI on all of these account is 120% or higher.

Thank you so much for any insight!!!

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I’m on a payment plan with discover for my charge off and a 100$ payment gained me 7 points. My capital one charge off hasn’t updated yet and I paid both on the 26th of February so Capital One is slow to update.

[FireMedic1]

A paid charge-off is always better than an unpaid one. Once you pay the charge-off, you improve your odds of having your applications approved maybe. Depends on how many, and the length of lates are on your reports will still be counted against you from the CO. Which will lessen over time.