Need Advice Please ;-)

[Karnage146]

Hey Guys,

So I finally settled on one of my last baddies, yay. It was a Walmart card that was charged off and transferred to Allied Interstate, my remaining balance was $1080. I had a payment agreement with them for $131 a month, but today they called me and settled for $500. I have a few questions in regards to this. In regards to settling, once an account is charged off, does it even matter if it is paid in full or settled, credit score wise?

Also, I noticed that a lot of my baddies are from GE(JCP, Walmart, Gap) and two of my paid off accounts, no negatives, are also from them, (Old Navy and Banana Republic).

I already sent an email to the GE Ceo in regards to the JCP account NOT REALIZING, that I had so many bad accounts with them. What is the realistic chance that I will get any of these TLs deleted from my credit score? 

Furthermore, if I can't have negative TLs removed from my score, how can I rebuild my score, I already applied and got approved for a Capital One secured card with a $200 limit and I have a victoria secret card with a $700 that I have had for years. Only bad thing about the VS card is that because I have had it for so long without use, in order for me to use it, they require that i allow them to check my credit score. I dont want to do this because I am afraid it will be closed or my CL will be decreased, any help is appreciated guys, thanks!

[guiness56]

Settling a debt is scored on par with the CO itself.  You are not double dinged but trading one negative for the other, so no score increase for that.  However, if the card was reporting a balance and a CL it was factored into your utilization.  Once it is settled and reports a 0 balance, the CL will no longer be included in your overall utilization.  Depending on the what the balance was, it could raise your score.

Additionally, lenders do not like to see that you settled debt.

Having them check your score is a necessary evil in the rebuilding process.  Only a HP would hurt your score.

Try your bank or CU and see what they have to offer in the way of CC you may be qualified for.

[Karnage146]

My score is a 553, so I don't think that I would be accepted for any cards. What is a CO anyways? Also, how do I find out when a TL will fall off of a report? Dodf or something like that lol.

[guiness56]

A CO is a charge off.

Yes, DoFD.  Only EQ shows that, TU and EX have drop off dates. Those can only be seen on your reports from annualcreditreport.com or through the CRAs.

[Karnage146]

I don't know what to do, these accounts won't be falling off until( I'm assuming), 4-5 years from now. I did the first part which is pay off the actual debt, the only one I have left is a 491 credit card which I can probably get a settlement for. But after that, apart from secured cards...i don't know how else to build it up. Knowing that several of my baddies are from GE really discourages me when thinking about doing GW.

[guiness56]

For the paid debt, start sending out GW letters.  That is all you can do.

Secured cards work and report the same as an unsecured.  They will help you.