Should I pay off old Revolving account?

[Anonymous]

I have a revolving acount (five hundred dollar account) that was charged off a few years ago.  It is scheduled to stay on my report until april of 2012.  Although it was charged off, it continues to factor into my percentage use of credit.  The debt is for 492 dollars.  Although it will fall off in a couple of years, would it help my score if I paid it off still? Since right now it is my only revolving credit on my report I feel like my score is getting hammered  because the percentage of use is 89 percent.  Am I better off just waiting it out or paying it off? 

Thank you!

[Anonymous]

The account also shows up as a Key withdrawal every month.

[Comp5569]

 I believe that if you pay it off now, it will up the DOLA to now.  This will in turn cause it to stay on your report longer.

You might want to try to work out a PFD letter?

[medicgrrl]

If you PIF now it will not change your DOFD.  I had 2 revolving cc's that were CO's and my score did increase with the balance reflecting 0.  You may want to look at adding some revolving credit to your mix for a better increase.  Maybe see if you can obtain a secured card thru your local CU that can grow with you. 

[Anonymous]

Great.  My instincts were correct.  I obtained a secured card and am just waiting for it to report.  That should help me out.  Also, a PFD is not a bad idea as well.  Thank you!

[guiness56]

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@Comp5569 wrote:

 I believe that if you pay it off now, it will up the DOLA to now.  This will in turn cause it to stay on your report longer.

You might want to try to work out a PFD letter?

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Paying off an account will not change the time it stays on your CR.  Nothing can change the DOFD.

If it is outside SOL you could request a PFD.  If they agree, get it in writing.

Message Edited by guiness56 on 06-07-2009 10:37 PM