A CO reporting monthly with a past due balance is definitely hurting your score. Paying it off or settling it will help, especially for a CO that old (assuming 5 years old if falling off in 2026). Once it stops reporting a fresh CO monthly that helps, too as it will finally age - assuming it is reporting monthly.
By contacting the OC, you won't reset the clock on falling off the report as it goes by Date Of First Deliquency, which will not change when you finally pay/settle it. HOWEVER, be aware that some OCs will take legal action on past due debt prior to the SOL on collecting debt. Depending on your state, when was the last time you paid/acknowledged it, etc this could be done on something you'd consider old. I don't know what the SOL is in your state or if First Premier does this, but you should be aware. By offering to pay/settle/negotiate (you can offer a percentage to make it go away), you would avoid any potential legal action and see some points on your score before it falls off.
Hope that helps! Good luck!
