Questions about charge offs

[Anonymous]

We have some charge offs showing on our credit report, should we continue to pay on these?  We want to refinance our home with a FHA Secure in the next 6 months and are trying very hard to pay all debt off.  We absolutly believe that we should pay these debts, but if the payments are not going to make a difference isn't really like throwing money away?  Thank you and I look forward to any response.

Tiffany

[dragnldy]

Most mortgage lenders will tell you you have to pay off any outstanding collections/ co's.  Even if it doesn't necessarily help your score, it will definately help when your lender does a manual review.

[Anonymous]

Paying a charge-off makes no difference on your credit score.

[Anonymous]

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TheNewWorldMan wrote:
Paying a charge-off makes no difference on your credit score.

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Is that true? So, if I have, like 4-5 charge-offs on my CR, with the OC, past SOL, I shouldn't try to pay them at all to boost score? What if I'm planning to purchase a home in the next 2-3 years?

[Anonymous]

Ok, so after we pay them off can we request from the creditor that they be taken off of CR?

Tiffany

[llecs]

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TheNewWorldMan wrote:
Paying a charge-off makes no difference on your credit score.

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Depends on how it is reporting. A CC revolving CO with a balance can greatly impact utilization. I don't have my notes in front of me, but DW had a CO with CapOne go down to $0. Score went up something like 27 points. Overall utilization dropped 25%. Individual utilization for that card was 300%.

[Anonymous]

As far as scores go FICO treats all COs the same (paid or unpaid)  If the CO is showing a Bal.other then $0  it hurts your total UTIL.

You would need to get the OC to accept a PFD in order to get it deleted from CR.

I do not know of any mortgage co. that will give you a mortg. untill all debts are paid.