Issues with a Chargeoff

[Anonymous]

So I was in the midst of fixing my credit, got my Fico to 660, had a charge off that I just paid my first payment on. (originally the account was closed and I called them to start making payments on an arrangement and it was marked as a chargeoff)

needless to say my score dropped to 617, I called and asked if i paid off the arrangement in full would they please mark the account as closed or take it off the report to which im told it will be labeled "settled in full"

Whats the best way to go about this? I want to do my best to get the score back to where it was asap, any help would be greatly appreciated.

[Remedios]

---

@Anonymous wrote:

So I was in the midst of fixing my credit, got my Fico to 660, had a charge off that I just paid my first payment on. (originally the account was closed and I called them to start making payments on an arrangement and it was marked as a chargeoff)

needless to say my score dropped to 617, I called and asked if i paid off the arrangement in full would they please mark the account as closed or take it off the report to which im told it will be labeled "settled in full"

Whats the best way to go about this? I want to do my best to get the score back to where it was asap, any help would be greatly appreciated.

---

What happens is after it's completely paid off, and final update is completed, your scores will start to recover gradually. 

So, your score wont go asap where it was. It takes time.

[Anonymous]

will i see a drop in score after paying it off? that scares me even more

[Anonymous]

A slight one, yes, likely a few points because it’ll update that last time. You’ll regain them though and more, since it’ll stop updating and begin to age. Time cures all and this will allow it to start.

[Anonymous]

is it worth calling them again and asking for pay for deletion again? also last question

is it more worth paying this worth paying in full now? the arrangement weve made? or paying it in installments?

[RobertEG]

The debt will not be discharged until it has been paid in full.

If partial payments are made that are not sufficient to discharge the full, delinquent debt, the creditor can still continue to report monthly delinquencies to the CRA, which can increase the period of delinquency.

The account remains in an overall delinquency status until the debt is discharged.

You can, as part of a payment plan offer, ask the creditor to agree to cease updates to the payment history profile that add additional, higher levels of delinquency provided you continue to make timely payments under the agreed repayment plan.

Absent such an agreement, the creditor could, if they chose, continue to report increasing delinquency.

[Anonymous]

Ok so I have already made a deal with them to pay it off in a payment plan of 6 payments. Do you think it's possible to have them agree to that still?
I've only made 1 payment

[AllZero]

My comment from the other post you made...

FICO score is a moment in time. Think of the long term. If you're not applying for anything, forget the score.

Priorities should be:

Paying the charge off. If it's updating monthly, you're losing points. Paying it off will let it age and your score will recover.

Paying off your debt without being late or incurring interest.