My oldest and seasoned tradeline is now being marked as a charge-off. I’ve heard that it hurts the score a lot. Should I settle or let it be the way it is? Not that settlement will be able to save my score a lot though!

3 Answers
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How old is the charge-off? It’s supposed to stay on your report for around 7.5 years and will affect your score. If it’s too old, the collection attempts have stopped and the creditor is not suing you, there’s no need to do anything about it. Instead, try building your credit with new accounts.

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A charge-off is evidently damaging to your credit score, and so is settlement. But, at least settlement shows that you’ve tried paying as much as you can. Whether you want to pay or not is totally up to you. But a charge-off doesn’t mean that the debt is uncollectible. Your creditor may still go on with the collection process or file a lawsuit.

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Speak with the original creditor and try to get the charged-off status removed from your report. If that doesn’t work out, try ‘pay-for-delete’ or a ‘closed’ status for the account.


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