Help with charge off account

[brentlamb6708]

Ok I have 3 charge offs on my account from when I lost my job in 09. No excuse but that's what happen and me being young and dumb just let it go and never tried to discuss it with the ccc, I called the bofa collection department and I have send 3 pfd letters all being turned down. Today I spoke with the ca and they told me they would settle for 225 of the original 796 now I believe in paying my debts. Will a paid co look better than a settled co, or should I keep trying to pfd them?

[guydiver]

---

@brentlamb6708 wrote:
Ok I have 3 charge offs on my account from when I lost my job in 09. No excuse but that's what happen and me being young and dumb just let it go and never tried to discuss it with the ccc, I called the bofa collection department and I have send 3 pfd letters all being turned down. Today I spoke with the ca and they told me they would settle for 225 of the original 796 now I believe in paying my debts. Will a paid co look better than a settled co, or should I keep trying to pfd them?

---

A paid charge off vs. unpaid or settled will not make any difference in Fico scoring.  They will all stay on your CR for 7-7.5 years from the DOFD.  A paid CO can look better on a manual review, and could possibly help you get any future mortgage.  Speaking from experience, get the PFD if at all possible.  If you do settle at least they won't be able to come after you any more.  Paying the full amount won't help your Fico score.  As the CO ages, it will have less of an effect on your score, but it will still put a significant dent in your score as long as it is reported.  I would offer the full amount to get a PFD, and make sure you get it in writing.  FYI: BofA would have to agree to the PFD.  The CA can delete their reporting and leave BoA still reporting the CO.  Beware!  Cap1 did that to me.

[AndySoCal]

Score wise paid charge off versus unpaid charge off does not help.  A settled account is considered a major derogatory.  Are you talking to Bank of America or a collection agency who is collecting on behalf of Bank of America?  If the total amount due is over  your credit limit this as well is hurting your score as well. Here is a suggestion talk to the original creditor ( B of A) see if you can work out a payment plan to pay off the debt in full.  Your score might see a boast in your score when the account balance is under the credit limit.  At least the account will paid off and the account will come off your credit report  at some point in time. After it is paid off there is the option of a goodwill letter. The idea is not perfect by any means,   I hope this helps