How will paying off accounts reported as charge-offs as well as 3 year old closed accounts affect my credit?

Answer 1

It will help!

Answer 2

Think of the 7 year rule. Anything older than 7 years should automatically fall off your credit report. This is a double edged sword - you could ignore the past and hope it goes away, but it could come back to haunt you. Every time that old balance is transferred to a new company (debt collectors) it is re-reported. Even if the balance does not get transferred the holding company could still re-report it at any time. Re-reporting makes the mark on your credit fresh and starts the 7 year countdown over again. If you pay off the debt they can't re-report it but it does start the 7 year countdown all over. The best solution (if you can) is pay off everything old and then wait seven years without any more mistakes...you will then have perfect credit.

Answer 3

A paid charge off is not much better than an unpaid one, so it's always good to negotiate a PFD (pay for delete). Tell the CA that you will pay the account if they delete it from your credit report. Get it in writing. Don't believe them when they say they can't do it, it happens every day. 3 yr old closed accounts if they were current when closed are ok.

Answer 4

I think it does have an impact but not as much as you'd think. The charge offs will still be reflected on your credit report. You should ask the companies to submit a statement to the bureaus that you paid them off - there's an area on credit reports for comments. You should also get a letter from them stating this as well so that you can submit them as proof.

Answer 5

Well if its a charge off that means you did not pay,and it goes against your credit.if you paid it you can show evidence that you paid off the account,and it will show you paid it off and thats shows you made an effort and they take that under consideration..Three year old accounts that has not been paid off,will show on your credit for 7 years,if you paid them off it will show a good report and that they have been paid...The bottom line after 7 years you can clear your credit rating and have the bad taken off,however you will have to request that,usually they will not do it volunterly..Also every time someone checks your credit it will go against you,it tells them that you are trying to get credit and have failed ,its not good...If you have some good credit you need to go to them and ask them to make a report to the credit bureau on your behalf....Good Luck,I know its hard to get it straight,I have been there and done that

Answer 6

It actually will affect the scores negatively for a short period. This is because the system will identify the recent payment to a derogatory account as current negative activity. It is one of the many flaws in the scoring system.

Here is some additional info. Hope this helps.