Interest rates and debt

[Sacoria Henderson]

Our loan officer gave us options on how to get a better interest rate....

He has a charged off account that his ex wife put solely in his name and stopped making the payments and the balance on that account is 2800 and it’s a charge off now.

The loan officer told him to if he pays the 2800 off he can approve the loan at a 3.6 interest rate or if he does not pay the account off our interest rate would be 6%.

I think it’s a no brainer to pay the account off but he is hesitant and wants advice on what he should do.

Advice please?