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Paying off a Fst Premier reported as a Bad debt/collection on Equifax

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saraken
New Member

Paying off a Fst Premier reported as a Bad debt/collection on Equifax

I wanted to know if i should pay on an account  from first premier bank that is noted as a Bad Debt/Collection account.  I owe 412 dollars on this and i ran the fico score estimator and it was saying that it was revolving credit and if i paid 25 a month for the next 12 months it would raise my 560 score to over 600.   I called First premier bank and they said  i would have to contact ARM.  But on my credit report it said it was a Charged off account.   I wanted to know if paying on this will help my score as it said and will it get removed from my report when I pay it off.  

Message 1 of 5
4 REPLIES 4
soccrstar
New Contributor

Re: Paying off a Fst Premier reported as a Bad debt/collection on Equifax

They Will NOT delete. so have no choice but to offer a settlement. can start low at 20% and I'm sure they'll counter to something around 50%

 

when are they scheduled to fall off?


EQ: 632 FICO8 / EX: 622 FICO8 / TU: 648 FICO8 / EQ: 648 FICO9 / EX: 652 FICO9 / TU: 624 FICO9 / Credit Karma: 633 Transunion 622 Equifax / Credit Sesame 633 / Positive Open Loan Tradelines: Auto loan $42000 / NEWEST CARD - Don't Remember / goal by 2019: 650 or more FICO8 across the board
Message 2 of 5
mocha82
Regular Contributor

Re: Paying off a Fst Premier reported as a Bad debt/collection on Equifax

Yes they absolutely will NOT budge.  I even offered to PIF.  They wouldn't go for it.

Closed on my 1st home on: 11/30/2011
First Guaranty Mortgage Corporation (FGMC)
Starting Score:Equifax: 490 (01/14/2011)Transunion: 498 (01/14/2011)
Current Score: Equifax: 609(07/09/2012) Transunion: 644 (10/14/2011) Experian: 593 Lender Pull (08/22/2011)

Goal Score: 700

Take the FICO Fitness Challenge


Message 3 of 5
RobertEG
Legendary Contributor

Re: Paying off a Fst Premier reported as a Bad debt/collection on Equifax

A closed account that is either charged off and/or in collection is a bad debt.  It cannot be scored on the FICO simulator by paying it down in the same way as active revolving account balance.

Message 4 of 5
Anonymous
Not applicable

Re: Paying off a Fst Premier reported as a Bad debt/collection on Equifax

First Premier is the devil in my eyes.  I just went through war with them for the last ten months.  Yesterday I finally won!

 

I did not get it removed though.  They did not sell my account to a collection agency.  They assigned the debt to one.  They CA never put anything on my credit.  They did make a mistake and sent me a letter saying that I could pay $50 and my account would read as paid in full for a 515 balance.  I jumped and paid it.  The balance from First Premier account went to 0 and my score jumped 45 points!  Then two months later they put it back on and wanted more money, but I had my paper work that said my account was paid in full.  TU deleted the entry all together, EX adjusted the balance back to 0 and EQ would not change anything.

 

SO the battle began.  Finally I called First Premier.  They were mean to me, hung up on me, yelled at me.  Said I had to pay.  Finally I was like this is your mistake not mine and you have to honor the letter.  My next step was an attorney and they did not want that.  They finally agreed to make the balance zero and change it to paid in full.  

 

First Premier will not delete.  The past due balance shows in your revolving credit which takes your score down.  I am firm believer that if they won't delete I won't PIF.  I settle then since we can make a mutually beneficial agreement.  

Message 5 of 5
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