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Pay or not pay

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Established Member

Pay or not pay

Hello all-
I’m fairly new to the forum so I have a payoff question to ask and I’m hoping that someone can provide me with the info that I’m looking for.

I have a remaining charge off balance of $1600 with BOA and it’s after the SOL. The charge off started back in 2014 but I’ve been paying it down over the past few yrs. I just noticed that it pops up in my credit report every month now even tho I’m paying down on it. Is that supposed to happen? I don’t recall seeing it on my report previously. Why after a few years of paying it down is it now coming up as a charge off?

Another question....Since it’s already charged off, is there a benefit of paying the balance off at this point since it will still be on my report until 2021? Will that $1600 really hurt my score since the outstanding balance will still be out there?

Thanks in advance for your help with this.
Message 1 of 20
19 REPLIES 19
Senior Contributor

Re: Pay or not pay

Yes there's still a benefit to paying it off, IMO. Unpaid charge offs are the equivalent of being over limit on a card, since the closed account has a $0 credit limit, it's $1600/$0. This in turn suppresses your scores. Paying it will lower utilization and let the CO age.
Currently rebuilding as of 04/11/2019.

Starting Scores:
EX 518
EQ 518
TU 521

Current FICO scores:
EX 577
EQ 555
TU 575
Message 2 of 20
Moderator

Re: Pay or not pay

Yes the balance will be updated as you pay it off as the FCRA requires accurate information be reported.
"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 3 of 20
Established Member

Re: Pay or not pay

Is there a way to stop it from reporting every month since I am actually paying it down?
Message 4 of 20
Moderator

Re: Pay or not pay


@KingJaffeJo wrote:
Is there a way to stop it from reporting every month since I am actually paying it down?

Only way is to pay it completely off.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 5 of 20
Member

Re: Pay or not pay

I would call them and make an offer for PFD as it will continue to show up until it is paid in full  Also, It will not be the  7 years for it to drop off your credit report from original delinquency it will be 7 years from your last payment as you've acknowledged the debt by making payments on it, therefore, resetting the time clock on the debt.

Message 6 of 20
Senior Contributor

Re: Pay or not pay


@2Hogrider wrote:

I would call them and make an offer for PFD as it will continue to show up until it is paid in full  Also, It will not be the  7 years for it to drop off your credit report from original delinquency it will be 7 years from your last payment as you've acknowledged the debt by making payments on it, therefore, resetting the time clock on the debt.


I don't believe that's correct. The resetting the clock is only for SOL I believe. The credit reporting is 7 years from DOFD regardless. 

Currently rebuilding as of 04/11/2019.

Starting Scores:
EX 518
EQ 518
TU 521

Current FICO scores:
EX 577
EQ 555
TU 575
Message 7 of 20
Member

Re: Pay or not pay

 

Message 8 of 20
Senior Contributor

Re: Pay or not pay


@2Hogrider wrote:

 


You restarted the SOL and all it takes is acknowledging that you owe the debt, making a payment, entering a payment plan, making an agreement to pay, making a charge on the account, accepting a settlement offer. That was a collection not a charge off.

 





My posts are JMHO. I DO NOT claim to be a FICO expert. Just sharing my experiences from rebuild to recovery after BK DC. My siggy is not to brag at all. Just to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 9 of 20
Established Member

Re: Pay or not pay

Mine is actually a charge off. The BOA rep stated that the charge off went into affect in 2014 and that it will stay on my report until 2021. With that being said, that made me believe that even tho I’m paying down on it, it wouldn’t reset the late payment clock meaning, seven years from my last recent payment. Am I correct?
Message 10 of 20
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