To pay old Charge Off ??

[Joeyzoom208]

Hi all! So I currently have a First PREMIER CO due to age off in April 2016, but it is unpaid and I'm looking to buy a home soon. The company MAY be willing to do a PFD due to the account age of 6.4 years -- if I pay this and it is removed, am I likely to see a score bump? My scores have risen dramatically in 11 months of rebuilding - from low 500s to 631 on average !! When I disputed this account with EQ, it raised my score 27 points but then fell back after it was validated.

 

So if I pay it, am I likely to get that bump back if it is removed or even update to PAID CHARGE OFF ? I know paying a collection will not bump score, but what about a CO ? It is still reporting monthly as an open unpaid CO!! Im weighing my options as the total is just $420.00. and I can swing it. Weigh in please, as I'm really trying to hit 680 by Christmas (also majorly lowering my UTIL overall, scores climbing monthly!). This will be my last baddie except for one medical debt aging off in novmeber !!

 

Thank you all in advance !

[breeze]

I would wait, when it's past the SOL, and due to fall off relatively soon. Next month you can probably dispute it and get it deleted as obsolete. I'm sure you''l get more good suggestions from other members.

[inoubliable]

April 2016? If it were me, I'd just let it age off. You can send obsolete disputes to the CRAs months before it should fall off on its own. Up to six months before it should fall off for TU and EQ, I think. Three months for EX, I think. Might not make for a clean report by Xmas, but it wouldn't be too far past that. I wouldn't pay it, not when you're so close to getting rid of it.

[mendelssohn]

You will most likely not get a PFD with First Premier, and paying it may cause your scores to dip from the update.

 

On October 1, dispute it online as obsolete with TU and it will be deleted in a few minutes.

 

In December, start disputing as obsolete with EX over the phone.

 

In December, start disputing with EQ as obsolete online. You have to type in a reason because "too old to report" is not an option.

 

TU deletes 6 months early regularly, EX is 3-4 months and EQ is no longer predictable.

[Pepe Silvia]

There will not be any immediate increase from paying it off. Once you pay it off it will stop updating which will very slowly help your score as it ages off, but it will be deleted as obsolete before the lack of new updates has any meaningful affect on your score.

[JunkBuyersWorstNightmare]

You will most likely not get a PFD with First Premier, and paying it may cause your scores to dip from the update.

 

On October 1, dispute it online as obsolete with TU and it will be deleted in a few minutes.

 

In December, start disputing as obsolete with EX over the phone.

 

In December, start disputing with EQ as obsolete online. You have to type in a reason because "too old to report" is not an option.

 

TU deletes 6 months early regularly, EX is 3-4 months and EQ is no longer predictable.

 

 

+1.

[JeffeVerde]

A paid CO still counts as a CO for FICO purposes.

[JunkBuyersWorstNightmare]

A paid CO still counts as a CO for FICO purposes.

 

 

Correct. Won't help your credit score one bit. May even hurt it.

[Joeyzoom208]

Agreed. Not paying, it will drop off in April (December for TU as they exclude 6 months early!!!) Patience

[motley6]

Unless you are going for a mortgage or trying to get back in the good graces of a special OC you burned (AMEX, NFCU), there is no benefit in paying a charge off.