Following me? Need Advice

[jonjohn]

Anyone that has been following my plight might understand what I am tyring to do.

I had a credit score of 641 with a $84.10 med debt and a $2256.00 charge off.

I successfully did a PFD of the $84.10 med debt. Although, I just spoke to hospital and it won't update til the end of Feb.

I settled the charge off at $1,354.00. I had to dipute it because it was showing $68 dollars still owing. That was fixed today.

Here is my problem. As a result of the $0 balance and that fact that is was taken out of my CC util (according to llec) it now dropped my score to 625.. OUCH!

The damage from the charge off is already done in my eyes. Should I just let it be, or should I do a PFD of the remaining $802???

I assume it won't help the score, but at least the negative would be gone!?!?!?

Input is appreciated...

[pizzadude]

When you settled the CO for 1.3K did you negociate a PFD or ask them to delete the TL ?

[jonjohn]

No, I did not.  I was showing the $2256 past due and charge off/bad debt.

I just wanted to get it to $0 past due but still charge off. Didn't have $2256 to throw at them at the time. lol

I really don't have the $802, but I could swing it if it means getting rid of it from my CR

That is the only thing that is on there showing neg.

Of course, I have had a 3 accts with late payments, but that was over 2 years ago.

[pizzadude]

So did they sell the remaining $800 to a CA or are they still holding as a remaining balance on this account ??   Or did they just write it off completely ?

[jonjohn]

No, they did not sell it. They just "charged off" the remaining balance

[jonjohn]

Also, I have a CC that is almost maxed (this is hurting my CC util) if I pay it down to at least half, will that help?

I was told once that paying a "large lump sum" actually throws up a red flag. It would be assumed that I just "came into" extra money. It's not a reflection of my credit responsibility. Would you agree?

[pizzadude]

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@jonjohn wrote:

No, they did not sell it. They just "charged off" the remaining balance

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Ok, well maybe you could further negociate a deal if they accepted an additional payment, they would delete the negative TL from your CRs....

And it is certainly possibly that they might sell it off in the future to a CA who would come after you for the balance.

[pizzadude]

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@jonjohn wrote:

Also, I have a CC that is almost maxed (this is hurting my CC util) if I pay it down to at least half, will that help?

I was told once that paying a "large lump sum" actually throws up a red flag. It would be assumed that I just "came into" extra money. It's not a reflection of my credit responsibility. Would you agree?

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Yes, lowering your revolving %util is good for your FICO score, especially if it is maxed out.

Also, I'm not aware of any red flag about paying a large amount at once....

[jonjohn]

How could they "sell it" or "come after me" for it if THEY were the one's that settled the account at that amount?

I have a letter from them that states.

" Dell Financial Services, LLC. considers the above-mentioned account closed and settled for less than full balance as of 12/7/2011."

[pizzadude]

Ok if that is the case then I think you are probably fine.  

In many cases, companies or CAs will accept a partial payment, and then sell the remaining balance to someone else to collect....