Credit repair

[Derekfiveo]

I have been in the process of repairing my credit and have a couple questions and need advice.

My current experian score is 542 and recently had a 22 point climb after paying off a student loan


There are 4 charged off accounts and I am only 3 years into them since last payment. I am doing whatever I can to get my credit up to get a mortgage. My other 2 scores were 540~ and 580~ which has probably risen recently like my experian.

I know the damage is already done and frankly I'm tired of reading that without any real answer. What do I do with my charged off credit cards. Some say settle some say don't pay some say pay with agreement to state paid in full or something similar.

Obviously. YES the damage has been done. Does paying these charge offs that are old have any effect to my score being paid? I read that FHA loans require no delinquent accounts. And is it not worth my time to actually pay in full and just to pay the minimum settlement I can get

I really would appreciate advice other then the damage is done because that's obvious. Now I just want things to improve now that I'm in better financials terms so I can buy a house.

[a_riot]

Does paying these charge offs that are old have any effect to my score being paid?

No, they will be on your credit report for 7 years whether you pay them or not. You have to be careful since sometimes starting to pay the debt back restarts the clock.

[Derekfiveo]

So let me figure this out. Chase credit card charge off 2500$. It is on my credit report. Now you have a collection agency that is attmepting to collect that money. That shows up on the credit report. By paying the collection agency wether it be a settlement or whatever changing there status to paid in full or what not will have no effect at all on my credit?

It almost seems like double dipping. I understand Chase being in my report for 7 years but the collection agency seems like it can go away off my credit report. To me that seems like it was be at least some sort of positive change? or no?


in a nut shell there are basically 2 negative credit reports for 1 charge off. One being the primary the 2nd being the collection agency. I would imagine the collection for the same account reduces your credit score. by paying or settling that collection would the score improve?

[ChrisMD]

Paying the debt now is not going to help your score much and probably not at all. It's what you don't want to hear but "the damage is done." In fact, it may hurt your score by bringing this old debt back to a current status.

We can go around and around about how paying what you owe is the right thing to do and doing the right thing should benefit you, etc. But as far as your credit score is concerned, it won't help you.

The best thing you can do to improve your score is wait for time to pass and establish new, good credit in the meantime.