First Premier...ugh

[tattooedhusker]

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@poohda23 wrote:

I am having the same problem.  I have two accounts with First Premier that are charged off and remain until July 2014.  When I do the score simulator it says that if I pay them off my scores will go up, but I have also heard that paying will make the account recent.  Any suggestions???

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This is my issue, they are scheduled to drop November 2014, I have also heard that the scores will drop if I pay it off. Kind of a catch 22?

[injustifiiable]

You can pay it now since it's being factored into utilization...I'm in a similar boat but for me they are dropping off March of next year so it's not really worth it to me.

[tattooedhusker]

I think I will go ahead and pay it. I will keep you guys updated on the effects.

[westo12]

Bad part about paying a charge off is it can make the DOLA more current, thus it looks like a brand new CO.  Had that experience a couple of years ago and it tanked my score 74 points.

[rm3]

I thought a CO is based on the DOFD and not DOLA. Please correct me if I'm wrong.

[tattooedhusker]

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@rm3 wrote:

I thought a CO is based on the DOFD and not DOLA. Please correct me if I'm wrong.

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That is what I had thought, I hope you are correct.

[westo12]

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@tattooedhusker wrote:

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@rm3 wrote:

I thought a CO is based on the DOFD and not DOLA. Please correct me if I'm wrong.

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That is what I had thought, I hope you are correct.

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If that's the case, then I sat with this paid charge off on my credit report for an additional 2+ years unnecessarily, before they finally did a GW deletion.   A mortgage lender I was working with told me to pay the charge off since it was affecting my util.  I paid it off, DOLA changed to the month I paid, scores dropped.  

[poohda23]

I'm hoping it doesn't tank my score.  I already sent out the emails offering a lower amount.  I'm hoping it will be ok since it's the OC.  I can say that I paid an old judgment and it dropped my score major points.

[Davidngo]

First Premier does not sell their debt; but they do assign CA to collect for them.  They do however have a backdoor collections department that will take payment even though a CA has been assigned.  They do tell you to pay through the collection agency; but I would advise not to as they may then report collection activity on your report.

In my situation with First Premier, I did have a CO account with them and this CO amount was being factored into my utilization amount.  When I paid the CO; my score increased by 20 points; they noted in the credit report as CO/Paid in Full with Zero Balance.  I think the fact that I now had less utlization and Paid CO; even though some say that it does not affect the outcome; it did increase my score.

If you do and try to use the backdoor method; insist that you make the payment to them.  I would EXTREMELY advise you to pay it off ASAP so the collection agency does not report to the credit agencies.  1 CO is bad, but a CO and a CA will hurt more.

Good Luck

[tattooedhusker]

I was stuck between paying this charge off or, adding $500 to my secured card to raise my limit (since $550 is my highest limit). I will be able to have both done by January, should I deal with FP first than?