@peaceful wrote:
I am in the process of re- building my credit. My score was so low, upper 400's to low 500's. The majority of my bad credit were collection accounts and a reposession. I took out two secured cards over the past two years and have paid on them consistantly. I dont even bother to look at my credit, because my score was just so low, my only option was to wait for accounts to expire and utilize the two secured cards that I have.
Anyway, through one of my secured cards, Capital One, they offer "Credit Tracker". I utilized this feature and was shocked that my score had went up 75 points over the past year!! For the first time, I'm feeling hopefull!!
My question is....I had a Kohls charge years ago, which had charged off. The balance owed is $535, which I would like to pay. I read somewhere that payinging off collection accounts could actually have a negative impact on your score, depending on when it is suppose to fall off of your report. Yes, it can have a temporary negative impact, as it makes the collection look "current", but as with my personal experience with a recent CO that happened last year, I got a FAKO jump for 45 points once my CO showed as paid. I think it depends on your file and situation.
The date of "first delinquency" of 11/2009, so I think this should fall off in two years. Yes, it should fall off somewhere between summer of 2016 and beginning of 2017. You have up to 7.5 years from the DOFD for an item to report. I would like to make good on this debt, I'm fearful however, that it will pull my score down, while I'm struggling to bring it up. "Date Major Delinquency First Reported" 05/2010. This does not matter in terms of the reporting date or SOL. There are also a few other collection accounts I can clean up, I just don't know if it's a good idea, and when it is okay to pay older accounts.
Any advice would be greatly appreciated!!
If the DOFD is reported as 11/2009, you may be outside the SOL for legal action on this debt, which could allow you to offer a Payment For Deletiong (PFD) for less than the amount you owe, because of the age of the debt. What state do you live in?
@peaceful wrote:
Thank you for responding, I appreciate all the help I can get. I live in Pennsylvania. Is it possible they will delete this account if I pay it? I've seen references on these boards regarding "Good Will" letter, is that what that means.
Lastly, below your name, it states old scores, current scores, and your goal. Could you share with me what that is? I see that alot on these boards. I would like to make the most of this site, to help improve my situation.
Thank you much!!
PA SOL is 4 years across the board, making this debt well outside the SOL, as long as you never brought the account current or made payments since the DOFD. If you haven't, then I would suggest sending a letter, a Payment For Deletion (PFD) offering a payment of $XXX (try for 40% ish, it's what I'm offering an account that has a DOFD of 9/2010). Just make sure that you have the amount ready to pay BEFORE sending the PFD letter, and that you will not make a commitment to paying unless you get a written confirmation that the company will delete the account from all credit reporting agencies.
A GW (goodwill letter) is for paid or settled accounts generally, and that's just where you request a good will of the company to remove the account since it has become paid/settled. If you don't get a deletion, but settle the account, you could try to GW the company then. IT's not guaranteed that you will get a deletion, but all they can do is say no to the GW at that point.
As for the signature thing, I changed mine slightly, but here you go, the thread that it came from: http://ficoforums.myfico.com/t5/Take-the-myFICO-Fitness/Take-the-myFICO-Fitness-Challenge-2014/td-p/...
No problem! I really hope it helps. GOOD LUCK! Let us know how your progress goes. 
Great advice Xaiduz
Thank you!! 
*beams*