Im confused about GW on Charge Off

[Anonymous]

Hello everyone. First I just want to send out my blessing to everyone who puts such amazing info on here. I have read for hours as Im sure everyone else has and I feel like I have so much more power with this info than ever before.

            I am a little confused on one thing and I have tried finding the answer before posting but Im still lost. My husband has 2 charged off credit card accounts. One with Target and the other with Capital 1. Both of these have been paid in 2008. We did not settle and pay less, we paid the full amount.  I have read previous posts that when a GW letter has been sent and they agree to remove(what we want to do) that it has actually lowered there score. I am sooo confused on this. One person said it could be because of the trade line?? We would like to send GW for removal to both and Im hesitant. Any thoughts would be appreciated. Thank you.

[IOBA]

Usually, the creditor will remove the entire tradeline for a goodwill.

When that happens, the AAoA changes.  That could affect your FICO score.

When that happens, the available credit changes.  That could affect your FICO score.

When a real person looks at the report, though, they will not see any negatives.   Having negatives (like chargeoffs and lates) will affect your FICO score.

IMHO, it's worth it to have them removed.

[Anonymous]

Understood! thank you for your reply. Much appreciated! I will go and spend the next few hours understanding AAoA...lol. I think we will go ahead and  GW for those charge offs. Thanks again.

[MarineVietVet]

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@Anonymous wrote:

Understood! thank you for your reply. Much appreciated! I will go and spend the next few hours understanding AAoA...lol. I think we will go ahead and  GW for those charge offs. Thanks again.

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When you send the GW's make it clear you are only asking for deletion of the negative items (late payments, charge off's, collections, etc.) associated with the account and NOT the entire trade line.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work

[Anonymous]

Ahhhhhhhhhhhhhhhhhhhhhhhhhhhh!!!!! That was the answer I was loooooking for!!!!!! Thank you Marinevietvet!!! In regards to that, if Im asking for them to remove late's and the fact that it is charged off , and they comply, do they take late payments off AND change it from being "charged off" to being" closed, paid in full"? I believe I would take more of a score hit if I had the entire tradeline removed right? I know everyone's situation is different depending on what is on his report.

[MarineVietVet]

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@Anonymous wrote:

Ahhhhhhhhhhhhhhhhhhhhhhhhhhhh!!!!! That was the answer I was loooooking for!!!!!! Thank you Marinevietvet!!! In regards to that, if Im asking for them to remove late's and the fact that it is charged off , and they comply, do they take late payments off AND change it from being "charged off" to being" closed, paid in full"? I believe I would take more of a score hit if I had the entire tradeline removed right? I know everyone's situation is different depending on what is on his report.

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If they remove all negative entries the account will once again be considered in good standing and will help your AAoA for up to 10 years after it was closed. If the entire TL was removed you would lose this help with AAoA. That's why it's important when sending a GW to ask the creditor NOT to delete the entire TL just the derogatory entries that led to the CO and/or collection.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work

[Anonymous]

Got it! thank you for clarifying that for me. I appreciate all the help so much.

[Anonymous]

Another question. On Equifax  it has the balance date being 12/2008 for Capital One. Does this mean the last time it was reported to the CB was in 08? If I send a GW to Capital one for this CO paid account to see if they would remove lates they might deny the GW and wake up the debt...I could take a score hit...true?

[Anonymous]

anybody?

[MarineVietVet]

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@Anonymous wrote:

Another question. On Equifax  it has the balance date being 12/2008 for Capital One. Does this mean the last time it was reported to the CB was in 08? If I send a GW to Capital one for this CO paid account to see if they would remove lates they might deny the GW and wake up the debt...I could take a score hit...true?

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Could that 12/2008 date be when you paid it off?

On your reports it will list several things for each account. For Cap 1 what are the dates listed for:

Status as of  (My latest TU report says Sept. 2010 for all my accounts)

Date of last activity (This also says Sept. 2010 for all my open accounts)

If the DoLA is recent I don't believe sending a GW will hurt you. If the DoLA happens to be 12/2008 you might be dinged a few points because the account status will be updated but in my opinion it's still worth it in your attempt to get this collection removed.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work