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Paying charged off accounts

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yillb
Established Member

Paying charged off accounts

Hey guys. 

 

Would it be better to pay monthly on a larger charge off ,rather than pay it in a lump sum ? i only ask, because some of my charge off's are a bit more than i just have laying around ( and i have about 12 ) . I would like to start getting them either paid up, or removed all together. 

 

My worry is , does it have any affect whatsoever on bringing my score down, if i re enter into a payment plan with some of these companies. 

 

thanks Smiley Happy

Message 1 of 7
6 REPLIES 6
Sassy_Taurus
Frequent Contributor

Re: Paying charged off accounts

Bump

Message 2 of 7
rckstrscott
Valued Contributor

Re: Paying charged off accounts


@yillb wrote:

Hey guys. 

 

Would it be better to pay monthly on a larger charge off ,rather than pay it in a lump sum ? i only ask, because some of my charge off's are a bit more than i just have laying around ( and i have about 12 ) . I would like to start getting them either paid up, or removed all together. 

 

My worry is , does it have any affect whatsoever on bringing my score down, if i re enter into a payment plan with some of these companies. 

 

thanks Smiley Happy


Do the charge offs show balances or 0 dollar balances?? Have they been sold to another lender?

 

-scott

Starting FICO Score: October 2010: TU 498 | EQ: 502
Current FICO Scores:: May 2022: TU: 784 | EQ: 770 | EX: 790
Message 3 of 7
yillb
Established Member

Re: Paying charged off accounts

 

 

some are 0 yes.. i always wondered why that was... 

 

but i also have some oldddd accounts that still show paid as agree'd, so i just left those alone. 

 

the ones listed below are a few, but their are many others. Very few actually show zero though. 

 

 BANK OF AMERICA369%Account overlimit. Credit limit is $200. Balance is $738. 
****FIRST PREMIER BANK135%Account overlimit. Credit limit is $300. Balance is $406. 
****CAP ONE109%Account overlimit. Credit limit is $200. Balance is $219. 
****MCYDSNB100%Credit limit not reported (highest balance used). Highest balance is reported as $767. Balance is $767.
Message 4 of 7
yillb
Established Member

Re: Paying charged off accounts

I actually got my report with myfico, and over half of my accounts are labeled charged off / bad debt balance $0

 

Hope that answers your question. 

Message 5 of 7
RobertEG
Legendary Contributor

Re: Paying charged off accounts

When the OC sells the debt, they must report $0 balance.  They cannot therafter take any payment on a debt they do not own.

 

The debt still lives, and if reported by a debt collector, would then signify both their collection and ownership of  the debt.  The debt collector cannot agree in any PFD to delete any reporting made by the OC.

Message 6 of 7
Anonymous
Not applicable

Re: Paying charged off accounts

So I wonder in my case, having two CO's with Wells Fargo both showing a balance but one of the account is being handled by Primary Financial and the other internally. Is this the reason why on my CR its shower a delinquent amount?

Message 7 of 7
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