I have a charge off on my credit report…. i called the company and made a settlement amount with them and they said they would put on my credit report "paid charge off " but they would not remove it from my credit report… Is this even worth doing , I mean will it improve my score or will it still be the same? or should I just wait for it to drop off since it is going to still be on there, just saying "paid" please help me with this ….? Im am just trying to rebuild my credit… any suggestions?
Credit Report Settlement
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most of the answers are almost correct, charge off can stay on your credit report for up to 14 years, after seven they can again report the debt. charge offs are a red flag to any lender paid or unpaid they really don’t care if you paid it off they care that you didn’t honor your agreement.
Having it show paid will help, especially if it’s not that old of a collection. Most lenders use your credit report to determine risk and responsibility. it makes you look far more responsible if you paid than if you didn’t which will be important when you buy a home.
It will help a little but not much….paid charge-offs are still big negative items on your credit report….It will come off your credit report naturally in 7 years, beginning on the date of default.
FYI: It’s different if you are applying for a mortgage…If you plan to do this, they almost always want to see outstanding collections/charge-offs paid in full.
It depends on how old the charge off is. The older a deliquent account is the less it affects your score. If you pay it off it will be reposted as paid but will be updated to the current date which may leave it on your report longer.
If you are trying to get a conventional home loan you will need to pay it off in full prior to closing or put the money into the escrow account so it can be paid.
If you are going non traditional home loan like FHA then you do not need to pay it off but you will need a written explination for the account. They only require judgements be paid off in full for that type of loan.
So to answer your question…if you have a short time until it falls off your credit report then let it fall off. If it is newe to your report than you should pay it off.