A paid charge-off is an account the creditor wrote off as a loss that you later paid in full. The status shows the debt is satisfied and the balance should be $0, but the charge-off itself stays on the report. Paying it does not restart the seven-year reporting clock.
Also called: charge-off paid, paid charged-off account, charged off, paid in full
What it means
A charge-off means the creditor wrote off your account as a loss. If you later pay the full balance, the account is updated to show the charge-off was paid. Experian explains that the charge-off stays in your history, but the status changes.
A paid charge-off is still negative information. Experian notes that some lenders view it more favorably than an unpaid one, because it shows the debt was resolved.
If you paid less than the full amount by agreement, the account should show as settled for less than the full balance instead.
Where it comes from
Whoever owns the debt when you pay updates the account through its regular reporting to the bureaus. The FCRA lets you dispute the “completeness” of an item, not just its accuracy. The FTC’s 2011 staff report gives a charged-off account that was later paid as an example of an item you can dispute as incomplete.
The same FTC report says paying a charged-off account does not extend the seven-year reporting period under 15 U.S.C. § 1681c. The clock still runs from the original delinquency.
Common errors
- The status still says “charged off” with a balance due after you paid.
- The original creditor shows $0, but a collector still reports the same debt as unpaid, or the reverse.
- The reporting dates change after payment, making the item look newer.
- A settlement is reported as a full payment, or a full payment is reported as a settlement.
How to dispute it
Gather your payment confirmation, the creditor’s paid-in-full letter, and bank records. Dispute with each bureau that shows the wrong status or balance, and say exactly what should change, for example “paid in full on this date, balance should be $0.” Send the same proof to the creditor or collector. Keep copies of everything and check the results when the bureau’s 30-day investigation window closes.
When it can be an FCRA violation
A bureau must reasonably reinvestigate a dispute and record the current status of the item under § 1681i. A furnisher that gets the dispute from a bureau must investigate under § 1681s-2(b). If either keeps reporting a balance you can prove you paid, that may support an FCRA claim.
If a paid account still shows as owed after your dispute, FCRA Attorneys offers a free case review, and you pay no fee unless we win.
Related
- Charge-off
- Settled for less than full balance
- Balance
- Date of first delinquency
- Derogatory mark
- Collection account
- Charged-Off Account Still Showing a Balance? When It's Accurate and When It's Not
- Credit report time limit calculator
- How to Dispute Credit Report Errors With Equifax, Experian and TransUnion
Sources
- FTC, 40 Years of Experience with the Fair Credit Reporting Act (2011)
- Experian, What Is a Charge-Off?
- 15 U.S.C. § 1681i, procedure in case of disputed accuracy (Cornell LII)
- 15 U.S.C. § 1681c, requirements relating to information contained in consumer reports (Cornell LII)
Updated November 2026. This glossary is written by FCRA Attorneys from public sources. It is general information, not legal advice, and is not affiliated with any credit bureau or industry association.