Rebuilding Your Credit

[BadCredit706]

Is there any benefit after trying to PFD by paying a charge off in full or settling. Thanks,

[tommyd1919]

I can only speak from my experience. I was offered a settlement on a few cards a few years back. I took the settlement and now it shows settled for less than balance on my reports and one shows charge off. I thought "charge off" was a mistake but Shogun says its just different verbiage. LO told me it didn't look "bad" but paid in full looks better. I am now trying to get these removed. I wish I had PFD and paid in full. Like I said just my thoughts and experience

[BadCredit706]

I'm dealing with Macy's and they won't budge at all for the PFD. Settlement isn't extravagant so I will most likely pay in full.

[guiness56]

If you take a settlement, make sure it states it satisfies the debt in full.  Otherwise they can try to collect the rest.

[BadCredit706]

I will make sure of that G.  Thanks so much!

[Shogun]

Settled and paid in full does not affect your credit scores.  Like his LO said, the PIF looks better to an underwriter that is doing a manual review.   So in otherwords, it has to be looked at by someone in order for it to make a difference.

[BadCredit706]

So if you can't get it off your report how are you ever to boost your score? I was denied a secured so I'm stuck in what to do. What's the point of paying it off? Will paying off a medical Make it come off or should I try and PFD them? I onoy have two charge offs and a medical collection. My Home Depot was closEd by them on good terms. My longest is a capital one charge off since I was 18.

[guiness56]

Paying anything negative does not remove it from your CR.  You can try a PFD.

If the COs are with the OC and are reporting a balance, those are figured in your overall utilization.  If you paid them, the amount would no longer be factored and you could see a raise in score.

A CO is a major derogatory, so is a collection.  Even though your score takes a hit for them paid or not, on a manual review they look better paid.

How old are these accounts you are talking about?

[BadCredit706]

the dates charged off I'm unsure but have been opened since 2009,2011. I would say charged off since 2011,2012.

[guiness56]

They are pretty new so probably still impacting your score a lot.