@nycfico wrote:I've heard many places ,including in here, that when you pay off or make payments against, a charged off account, that you are actually prolonging your FICO score misery by resetting the clock.
And yet I've also heard that accounts will fall off your report 7 years from the date of the first default, regardless of what happens between that date and 7 years from that date.
I can't reconcile those two statements. I am making small payments each month towards my wife's charged off accounts. Am I prolonging the misery of a low FICO score by doing so? (Even if I am, I'd rather do that then get a judgement or a lawsuit, but still, I'm wondering if it's actually hurting the FICO score and postponing the date in which it will fall off.)
Anybody know?
Once the account is COed its that forever going forward and its removal is at max 7.5 years from the DoFD. The DoFD is a set in stone date it is illegal to change it. As far as the Fico score since a creditor has to report accurate info by law and that includes the balance, it updates every month and in doing so it keeps the Fico from recovering. Once you pay it off then it stops updating on a monthly basis and can begin to age in Ficos eyes. I would not worry about the score and continue to pay off the account(s) its the right thing to do IMO.
@nycfico wrote:Thanks...
So...if I continue making payments past the 7.5 years past the dofd, then would it be on my credit report still when it updates, or would it be off the credit report and yet I'm still paying? If the balance is still not paid off it when it reaches CRTP it will drop from your CR and no further info could be posted.
Not trying to be trivial here, I'm trying to understand exactly how it works as I prioritize what bills I pay when...thanks.