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Boilermaker35
Posts: 5
Registered: ‎02-02-2014
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Advice on an offer I received from First Premier

Back in 2011 I had a charge off with First Premier for $400. I few weeks ago i decided to dispute the charge off with the CA and it came back as being accurate. Today i received something from FP saying their giving me opportunity to settle my CO account with the option to transfer my old balance to a new FP Master card which will be my new credit limit. "Plus 30 to 60 days after I make my first payment, my old account will be reported as setted" Sounds good!! But in the fine print it says, transferring this debt could negatively affect my ability to quantify for other cedit. It also says transferring debt to a new acount will re-start my 7 yr CA reporting. It goes on to say, my report and score could be negatively affected by the new account even if I'm making my payments on time. This makes no sense to me...
I'm new to this forum and credit repair in general. Any insight would be greatly appreciated. Thanks for your time!!
Valued Contributor
gdale6
Posts: 9,263
Registered: ‎12-13-2013
0

Re: Advice on an offer I received from First Premier


Boilermaker35 wrote:
Back in 2011 I had a charge off with First Premier for $400. I few weeks ago i decided to dispute the charge off with the CA and it came back as being accurate. Today i received something from FP saying their giving me opportunity to settle my CO account with the option to transfer my old balance to a new FP Master card which will be my new credit limit. "Plus 30 to 60 days after I make my first payment, my old account will be reported as setted" Sounds good!! But in the fine print it says, transferring this debt could negatively affect my ability to quantify for other cedit. It also says transferring debt to a new acount will re-start my 7 yr CA reporting. It goes on to say, my report and score could be negatively affected by the new account even if I'm making my payments on time. This makes no sense to me...
I'm new to this forum and credit repair in general. Any insight would be greatly appreciated. Thanks for your time!!

I advise you to circular file the offer. If you wish to settle make the offer without this new account gimmick, personally I would do nothing till your states SOL has passed.

EX Cred Ses 08/14: 767 ; EX Fico 04 V2 06/14: 775; EX Fico 08 07/14 778 ; EX Fico 08 BC 07/14: 800
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TU Fico 8 07/14: 719; TU MPM 06/14 706
Member
Boilermaker35
Posts: 5
Registered: ‎02-02-2014
0

Re: Advice on an offer I received from First Premier

I can pay the $400 to clear up the CO, but I dont understand, if the account is listed as settled why would my score take a major hit. I just received my Capital One secure card ($49 deposit) w/ a $200 limit in hopes of rebuilding and thought this unsecure card from FP would help. Is there anything that i could ask FP for that would help my situation. My fico score are for 648-677 and i can afford a hit.

Regular Contributor
NWintellectual
Posts: 201
Registered: ‎12-11-2013
0

Re: Advice on an offer I received from First Premier

From what I understand, you've already taken a bruising in the scoring model for a CO but the effect lessens over time as newer history erases older history. By paying/settling the old account it brings the "activity" on that account (change in balance) current as opposed to 3 years ago. It's a true bug in the scoring model that doing the right thing by your credit (paying off an old debt) causes the wrong thing to your credit score.

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Regular Contributor
Officer737
Posts: 149
Registered: ‎01-02-2008
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Re: Advice on an offer I received from First Premier

Your score will take a hit and bring the old account more current. Then it will take another hit when they issue the card carrying the old balance to a new card with the limit matching what you carried over (the $400). They issue you a maxed out credit card right off the bat (100% utilization). I am also willing to bet that somewhere in there, they are going to slap you with that $175 annual fee.


Starting Score: 502
Current Score: 10-21-2014 CK TU 614, EX 637, EQ 630
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Established Contributor
randyrhodes
Posts: 587
Registered: ‎12-18-2013
0

Re: Advice on an offer I received from First Premier

You'd come out on the other end a lot better if you just paid the charge off amount. You'll be taking like 3 derogatory marks with that one transaction if you transfer the old balance to a new card. I'd just pay off the old debt then apply for a new card after if that is your wish.
Valued Contributor
notfancy
Posts: 3,679
Registered: ‎11-23-2013
0

Re: Advice on an offer I received from First Premier


Boilermaker35 wrote:
Back in 2011 I had a charge off with First Premier for $400. I few weeks ago i decided to dispute the charge off with the CA and it came back as being accurate. Today i received something from FP saying their giving me opportunity to settle my CO account with the option to transfer my old balance to a new FP Master card which will be my new credit limit. "Plus 30 to 60 days after I make my first payment, my old account will be reported as setted" Sounds good!! But in the fine print it says, transferring this debt could negatively affect my ability to quantify for other cedit. It also says transferring debt to a new acount will re-start my 7 yr CA reporting. It goes on to say, my report and score could be negatively affected by the new account even if I'm making my payments on time. This makes no sense to me...
I'm new to this forum and credit repair in general. Any insight would be greatly appreciated. Thanks for your time!!

I wouldn't take their offer.

 

Here is a post from someone else that had the same offer and questions. I hope that it helps. http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Interesting-letter-from-first-premier/m-p/272...

625 EQ FICO Current Score: 660 DCU EQ FICO/ 645 Scorewatch EQ FICO , EX FICO 664, TU FICO 737 (08/2014)
Goal Score: 700   Seedling again as of 07/29/14
Frequent Contributor
virgo
Posts: 436
Registered: ‎11-26-2011
0

Re: Advice on an offer I received from First Premier

 

Run.  BofA has a 99 for 500 card. You should call them.  I know it seems daunting, but six months ago my scores were close to single digits (lol)  Now Im getting prime thanks to this forum.  Good luck

Moderator
guiness56
Posts: 22,406
Registered: ‎01-17-2008
0

Re: Advice on an offer I received from First Premier

Not sure if they close out the CO'd account as settled and transfer it to a new card, it restarts the reporting time.

 

That could only happen if you defaulted on the new one.

 

It would restart the SOL on the debt.

 

I was made this offer and did not accept it.


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