Currently I am in the process of repairing my god awful credit. One thing I have run accross is the extreme confusion about charged off credit cards and payments. I know they all come off in 7 years and the damage is done. But I am a little confused on what paying a collection agency accomplishes. -Chase credit card $2500 charged off displayed on my credit report -Collection agency now displayes on my credit report for the same amount for my chase card. This therfor seems like a double negative on my credit report. I know I cant do anything about the original charged off account, that will stay for 7 years. If i worked something out with the collection agency on that same account would my credit improve on the idea that the report will change at least with the collection agency to paid in full or something similar? There has to be some benefit to paying a collection otherwise why would anyone bother unless they went to court. Also does anyone have any estimates on how many points a hard inquiry takes off your score? i have 3 scrubbing off here in september, just curious how much impact it will have.