Several years ago, due to unforeseen circumstances, payments were not made to any credit account and therefore, the accounts are now charged-off, thus ruining the credit score.
Its about time that this needs to be fixed and here are couple of ways to fix the credit. The question is what is the best option.
Option 1 Do nothing and wait until these charged-off accounts fall off the credit report.
Option 2 Pay the charged off accounts in full. According to several sources, paying off the charged off account won't immediately boost the credit score but it will look better to the eyes of the lender. The paid account will still show up in the credit report as "Paid but previously charged off". It will show up for another 10 years.
Option 3 Settle the charged off accounts with collection agencies/banks for less than what was originally owed. It will stay on the credit report for 7 more years.
What is the best option in this scenario? Are there any other options that I have not explored? The houses in my area are usually around $150K and good ones are at $250K.