Rebuilding Your Credit

[tb05]

These forums have been fantastic--I'm new to the board and thought PFD was my only option...I have some charge-offs due to job loss that I am going to work on, but in the meantime I have a Target account at +120 days...I can pay the balance right now of $937, but am wondering if its a better option to call first to negotiate (and of course ask for it writing) or just to pay it in full and then neogtiate...also, what should  I realistically expect them to do if I pay in full? Thanks!!

[llecs]

---

tb05 wrote:

These forums have been fantastic--I'm new to the board and thought PFD was my only option...I have some charge-offs due to job loss that I am going to work on, but in the meantime I have a Target account at +120 days...I can pay the balance right now of $937, but am wondering if its a better option to call first to negotiate (and of course ask for it writing) or just to pay it in full and then neogtiate...also, what should  I realistically expect them to do if I pay in full? Thanks!!

---

4 months behind? I personally would just pay it off since it hasn't been CO'd. Otherwise the option would be to offer a PFD and if a few attempts fail, then to pay it. I personally lean toward 100% vs. a settlement. A settlement comment like "paid for less than full" is scored by FICO and is scored as a negative on par as a CO. And a full payment could improve your odds at a GW request later. As a creditor, I would be more open to a GW request for someone that paid in full vs. settled. But that's a personal call. Nobody can do that for you.

[RobertEG]

I too would pay.

Being 120+ late, you are fast approaching a charge-off of the debt, and possibly referral or sale of the bad debt, additionally resulting in a collection.  Those will each compound your woes.

Acceptance of a PFD offer is iffy. 

I would not throw the dice on a PFD offer.