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Questions about charge offs

Tiffany1971
Valued Member

Questions about charge offs

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
Rebuilding my credit one point at a time
Message 1 of 7
6 REPLIES 6
dragnldy
Regular Contributor

Re: Questions about charge offs

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.
Ficos
3/7/08 TU-646 EQ-640 EX-650
3/17/09 TU-678 EQ 666
3/20/12 TU- 760 EQ 785
Util almost 0 and baddies all gone! now to gardening!
Message 2 of 7
TheNewWorldMan
Valued Contributor

Re: Questions about charge offs

Paying a charge-off makes no difference on your credit score.
- - - -
in a credit-scoring postnuclear Stone Age...
Message 3 of 7
abc1121
New Contributor

Re: Questions about charge offs



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

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?
________________________________________
6/27/08 - FICO: TU-566 EQ-593 EX-627
FAKO: TU-598, EX-567, EQ-579
Goal: mid600's on all by August 2008!
Message 4 of 7
Tiffany1971
Valued Member

Re: Questions about charge offs

Ok, so after we pay them off can we request from the creditor that they be taken off of CR?
 
Tiffany
Rebuilding my credit one point at a time
Message 5 of 7
llecs
Moderator Emeritus

Re: Questions about charge offs



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

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%.
Message 6 of 7
HappyDays
Moderator Emeritus

Re: Questions about charge offs

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.
Message 7 of 7
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