Charge Offs

[CreditExpressNJ]

So i have 1 charge off on my account from the University of Phoenix back in 09 .. Anyone have experience with them and would be it be wise for me to pay this account off or make a payment arrangement for a PFD or just leave it be im unsure what to do here and i know its hurting my score because its a charge off...

[guiness56]

Is it reporting a balance?

[RobertEG]

It is always wise to pay delinquent debt.

You can always choose not to once past SOL and credit report exclusion, but neither of those events deletes debt.

Unpaid delinquent debt can, regardless of FICO score, be a reason for denying future credit.

SOL expiration means they cant get a court order for satisfaction of the debt, and credit report exclusion means othes wont become of aware of the CO simply by pulling your credit report.

The best option is to get both CR deletion and obtain satisfaction of the debt by getting acceptance of a PFD offer.

However, that is not in the consumer's control.  If they wont accept a PFD, you can always pursue GW requests after it is paid.  Still a shot at deletion.

The next-best option is to settle for less and obtain the creditor's agreement not to report that the debt was settled for less.

That wont remove the reported CO, but will at least obtain satisfaction of the debt while not including the statement in your credit report that you did not fully pay all prior debt that you incurrred.  Many consumers in the midst of a mortgage app are forced to pay such debt as a condition for final loan approval, so if they dont have time to pursue a PFD or the party has already declined a PFD offer, payment must be made.

The last two options have different orders of preference based on your own needs.

One is to pay in full, and the other is to settle for less, with no agreement obtained not to report the paid for less comment.

Paying in full avoids a paid for less comment on your credit report,  but is additional money out of pocket.

Settlement for less obvious has the benefit of less money out of pocket, but with possible reporting of the paid for less comment.

[CreditExpressNJ]

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@RobertEG wrote:

It is always wise to pay delinquent debt.

You can always choose not to once past SOL and credit report exclusion, but neither of those events deletes debt.

Unpaid delinquent debt can, regardless of FICO score, be a reason for denying future credit.

SOL expiration means they cant get a court order for satisfaction of the debt, and credit report exclusion means othes wont become of aware of the CO simply by pulling your credit report.

The best option is to get both CR deletion and obtain satisfaction of the debt by getting acceptance of a PFD offer.

However, that is not in the consumer's control.  If they wont accept a PFD, you can always pursue GW requests after it is paid.  Still a shot at deletion.

The next-best option is to settle for less and obtain the creditor's agreement not to report that the debt was settled for less.

That wont remove the reported CO, but will at least obtain satisfaction of the debt while not including the statement in your credit report that you did not fully pay all prior debt that you incurrred.  Many consumers in the midst of a mortgage app are forced to pay such debt as a condition for final loan approval, so if they dont have time to pursue a PFD or the party has already declined a PFD offer, payment must be made.

The last two options have different orders of preference based on your own needs.

One is to pay in full, and the other is to settle for less, with no agreement obtained not to report the paid for less comment.

Paying in full avoids a paid for less comment on your credit report,  but is additional money out of pocket.

Settlement for less obvious has the benefit of less money out of pocket, but with possible reporting of the paid for less comment.

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ah ok thank you so much so i guess ill try to start a payment arrangement with them for a PFD ...

[fembrist]

Hello, just wondering if you had any luck with your PFD. I am dealing with "those people" as well.

Thanks!