I have 2 charge offs on my credit repot would paying these things off remove them?

Question

I have 2 charge offs on my credit report and would like to really fix my credit, would paying these things off remove the charge off status on my credit report??

Answer 1

No, the accounts would still stay on your credit report for 7 years from the date payment was made and they would still be negative!

The way to get them off of your report? Ask the collection agency for a "pay for delete". Ask them to delete it or change it to "paid as agreed" if you pay the account off. If they say no, don't pay it.

Get it IN WRITING that they will remove it.

You should also try to negotiate paying less than 100% of the amount owed. Most collection agencies, depending on how old the account is, will settle for 50% of what is owed.

Answer 2

This is one of those answers i always advice people that it all depends on an individual.Paying a charged off account does NOT remove the damage it has caused you on your credit report or remove it .

The trick is that Negative reports should remain on your credit profile for an estimated 5-7 years depending on the state you live. Not paying the charged off balance makes the creditor have the pleasure of updating it every month for those 7 years such that each time you apply for any loan they can clearly see exactly what youve been upto for the past 5-7 years. Paying off the debt or should i strongly suggest negotiating the debt such that you pay only quater of the debt usually helps in the sense that instead of the creditor posting an actual amount as past due or stating an account as "charged off",you now have "settled for less than amount owed". This helps alot because to certain creditors it shows you actually acknowledged money owed and tried to make ammends as opposed to someone owing money and never accepting any responsibility to pay it back whatsoever.If it was a car reposession and any debt above 5000$ let it be and buy cash if you need one untill the 5-7 years is over.I have had more than my fair share of these problems in 2005 with a credit score below 530.However when i began negotiating and paying off the debts i had ,my credit score is now above 700and this is no lie. Try these guys to begin with,annualcreditreport.com and do it yourself,you dont even need the so called experts.

Answer 3

It doesn't remove them from the charge off status. The debt even if negotiated to a lower amount still remains for 5-7 years on your credit report. It is far better if the debt is listed as "settled for less than amount owed" than a charge off because you have not declined total responsibility to pay your debts.

You may not be able to negotiate 25%, but 50-75% is much easier to obtain if you can't pay in full. The IRS does consider this "forgiven debt" as income and will be reported.

Your debt may be sold to a collection agency. This is the 9th level of hell.

Answer 4

First off, if you file bankruptcy, they will still remain on your report. That may relieve you of the debt, but it will not change the status of "charged off" and the account itself will remain on your credit report as well as a bankruptcy, which is almost credit report suicide. They may just amend it to say that it was charged off AND discharged in bankruptcy. Also, it is obvious that you are concerned with your credit score. DO NOT file bankruptcy if you want a shot at raising your score. Bankruptcy stays on your report for 7-10 years depending on which chapter you file. For the first two years after a bankruptcy, a new creditor wont touch you with someone else's ten foot pole. In that two years, your credit score will plummet. Don't let that attorney hurt your credit worse than it is already, especially if you can swing taking care of the debt. Your bankruptcy will only help him. Pay them off. The status will change to paid and even if the raise in points is only marginal, you will show lenders that, although you had a rough period, you are responsible and took care of your debts. Also, some collection agencies, etc, will remove the debt sooner if you just pay the thing off. This will allow you to sort of circumvent that seven year thing. If you are trying to build credit or if you need your credit report frequently, I would suggest you enroll in a credit monitoring membership. Each bureau has various memberships that give you various features such as unlimited reports, unlimited scores, credit score tracking charts (to show you your progress), and even an appraisal of your credit report to tell you exactly what to do to raise your score. Read the websites thoroughly so that you know you are getting the benefits that you need. Finally, never, please, NEVER waste your money on those places that say they can "clean up" your credit report. There is absolutely NOTHING that they can do that you cannot do yourself.

Answer 5

Paying off the "charge off's" will improve your credit score. Not paying them off will continue to haunt you for--perhaps--years to come.
What the charge off means is that the company gave up trying to collect the money. This is a big 'red flag' to anyone else who might extend you credit, and is the precise reason that credit rating bureaus exist--to keep folks like you from "bilking the system" and getting additional loans.
These are still loans you owe. You have a moral, and legal, obligation to pay them. Future credit lenders need to know if you keep your obligations, or dismiss them.
Seven years from the date the charge off was made, the company might sell its "old loan portfolio" to a collection agency. They can do that at any time! If they do, this new collection agency (which may have bought your debt at $.05 on the dollar) can start new legal proceedings against you to collect the debt. Indeed, they have every incentive in the world to do so. You see, you still (even seven years from now) will owe the debt! So don't believe those who tell you "it will clear off your credit report in seven years." That may not be true--because that loan can still be sold, and a new seven-year cycle will start.
Finally, you can't hide from your past. You'll need to pay these things off. It will look a lot better to a prospective lender if you can show that even after a charge-off occurred (due to whatever circumstances--even stupidity) that you still honored your obligation.
Then, each month after paying the loans off, instead of you fearing borrowing again, you'll know that each month your credit score will rise just a little. And, if paid off now, seven years from now, you'll know these old loans won't rear up their ugly heads to bite you once again.
This is a matter of moral integrity, as much as your credit score.
I've included a link to help you learn to better manage your finances, and live within your means.

Answer 6

It will not change the status from "Charged off" but it might keep it from going to collections and then having that show up on your credit report.

And believe me if you call them and say you want to pay them off, they will take your money.

Answer 7

Once they are charged off it is too late. You eed to allow 7 years from last activitty to see them drop off the credit report.

Robert

Answer 8

If they are already written off, you can't pay them off. The only thing that would help would be bringing active but behind payments to date or paying things "in collection".

Answer 9

instead of saying charge off it will then say paid charge off