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Credit Report Surprise

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Katlady1405
New Visitor

Credit Report Surprise

I have been a stay at home mom for years and today pulled up my credit report. Long story but I will try to be efficient here - I found a credit card balance of nearly $8000 (!!!!!) that was charged off back in 2009. My husband had done a credit consolidation loan a while back and I stupidly assumed that this card had been paid off too as part of that deal but apparently it hadn't.

I had some credit issues in the past but thought I was on the road to recovery now this.

I am assuming that I haven't seen any attempt at collection on this account because we moved ... Choosing to not assume my husband saw collection notices and never told me....

Anyway, now that I know, I called and made arrangement to make payments. All I can do at the moment is $100/month which will have me paying for years. I'm in the process of trying to get a full time job and could maybe settle?

Just wondering what others would do in my shoes re: this huge charged off account that I wasn't even aware of that is ruining my credit score???
Message 1 of 5
4 REPLIES 4
lmfields84
Regular Contributor

Re: Credit Report Surprise

for that much, I would settle for a fraction of the balance and let it age off in 2016.  At 5 years out, they will be happy you paid at all, so I would low ball the offer.  That is WAY too much money and too old of an account to PIF.  Just my opinion though!

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Message 2 of 5
Katlady1405
New Visitor

Re: Credit Report Surprise

Will it improve things if I do in fact settle? Or would it all just disappear off my credit report whether I pay anything or not after 7 years? I feel clueless! Smiley Sad
Message 3 of 5
cgussio
New Contributor

Re: Credit Report Surprise

During a manual review a PIF will look better than settling; however, as was previously stated, this will fall off your CR in 2 years. Unless you are planning on applying for a mortgage during that time period, I too would negotiate a significantly lower amount and pay that instead.

Message 4 of 5
lmfields84
Regular Contributor

Re: Credit Report Surprise

+1   it will age off no later than 7.5 years from the date of first delinquency no matter if you pay it or not but most fall off by the 7 year mark (30 days past due, then 60, 90, 120, Charge Off is usually how it goes.) so, say you were first 30 days late in January, and the account charged off in May.  That would mean by January of 2016 you could be rid of it either way (but if you pay nothing, surely collectors will haunt you all the days of your life, ugh).  But as previous poster said, if you are applying for a mortgage, well... don't apply for a mortgage.  A manual review may uncover the settlement and look very bad.  Good Luck!

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Message 5 of 5
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