Paid charge offs
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|Sat, 06-21-2003 - 10:27am|
Okay, I've started paying on dh's charge off. We have a tax refund coming that we plan to apply in part to the charge off, in part to our contingency fund, and then other things--some to charity, a little for spending money, some for our down payment fund, and so on (some of you have seen my complicated percentages chart for "found" money lol). My question is, I know a charge off looks a lot less awful on your record once it has become a "paid charge off," but I want to know whether the credit report will record *when* it was paid off and whether it matters how soon. When we go to apply for a mortgage in a few years, I plan to tell them (which is the truth) that dh accrued the charge off through poor record keeping, but that I am fully in charge of the finances now and that I keep good records and pay my obligations (which is reflected on my nearly perfect credit record). I would also like to show them that as soon as I learned of the charge off, I took care of it. Will it matter if I can show them that I paid it completely off almost immediately, or will they just want to know that I paid it faithfully until it was paid off?
If it makes a big difference, then we will apply nearly all the refund and pay it off all at once. Otherwise, I'd rather pay only a portion of the refund to it and the rest to other allotments (in either event, I *will* put 10% to charity, but the other items are negotiable).
Thanks for any feedback.