Please advise

[Anonymous]

I currently have an account with USAA for a credit card that was opened in oct 2010. It has a balance of $9489 and is reporting as closed charged off as updates as "failed to pay" each month. The DOFD is Feb 2013. How much is this affecting my credit?

I believe I have the following options:

1. Set up payment plans for the next 4 years

2. Offer a settlement (but it's USAA)

3. Refinance my car and pay it in full

4. Ignore it and let it roll off my report

[Anonymous]

After doing a bit more reading I believe my options are to either set up a payment plan with USAA, or refinance my car and pay the CC in full. Which would you guys do and what terms would you try to negotiate with USAA?

[2b2rich]

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@Anonymous wrote:

I currently have an account with USAA for a credit card that was opened in oct 2010. It has a balance of $9489 and is reporting as closed as updates as "failed to pay" each month. The DOFD is Feb 2013. How much is this affecting my credit?

I believe I have the following options:

1. Set up payment plans for the next 4 years

2. Offer a settlement (but it's USAA)

3. Refinance my car and pay it in full

4. Ignore it and let it roll off my report

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I'm surprised this hasn't been charged off (unless they just haven't updated the balance to zero).

I would imagine they would rather get their money than charge it off and sell it for less, so yeah, I think I would contact them and try to settle it because you're looking at it not rolling off of your report until 2020, and that's only if you aren't sued fo the balance and get a judgement placed on your report for 7 years from it's filing date.

I think I would be real nice to them when I call too  it could go a long way in your options.  Good luck!

[Anonymous]

Either way you are essentially setting up a payment plan - only difference is one plan puts your car at risk....

The only thing I would try to negotiate with USAA for is no more interest, maybe deletion of derog status when paid off, so it becomes a positive.

[Anonymous]

It actually has been charged off. I'm not sure why I didn't include that in my initial post. I will edit for clairity.

[Anonymous]

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@2b2rich wrote:

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@Anonymous wrote:

I currently have an account with USAA for a credit card that was opened in oct 2010. It has a balance of $9489 and is reporting as closed as updates as "failed to pay" each month. The DOFD is Feb 2013. How much is this affecting my credit?

I believe I have the following options:

1. Set up payment plans for the next 4 years

2. Offer a settlement (but it's USAA)

3. Refinance my car and pay it in full

4. Ignore it and let it roll off my report

---

I'm surprised this hasn't been charged off (unless they just haven't updated the balance to zero).

I would imagine they would rather get their money than charge it off and sell it for less, so yeah, I think I would contact them and try to settle it because you're looking at it not rolling off of your report until 2020, and that's only if you aren't sued fo the balance and get a judgement placed on your report for 7 years from it's filing date.

I think I would be real nice to them when I call too  it could go a long way in your options.  Good luck!

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Legally it had to be charged off after 180 days delinquent. They are not lawfully required to report the CO status. Being charged off does not zero the balance. That only occurs when the bad debt is sold, or forgiven.

[Anonymous]

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@Anonymous wrote:

Either way you are essentially setting up a payment plan - only difference is one plan puts your car at risk....

The only thing I would try to negotiate with USAA for is no more interest, maybe deletion of derog status when paid off, so it becomes a positive.

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NormanFH, with it being a charge off do you still think it is probable for USAA to delete derog status for PIF? If so I will go refinance my car tomorrow. I know I will have no problem making the car payments, and I would prefer USAA update as positive now rather than wait 4 years until I get them PIF.

[Anonymous]

Only way to know that is to ask. At any rate, I would be very hesitant to put my car at risk for an old debt....

[Anonymous]

Thanks for the advice NormanFH. The only reason I'm so comfortable putting my car "at risk" is that I have a solid full-time federal job with a stable income and plenty of family with the means that would without a doubt back me up if something were to happen.