Rebuilding Credit Not Working - Should I settle?

[Anomalous]

This site (see link below) seems to have a more updated listing of each state's SOLs. I compared it with what I found on my state's legistlature website and it was correct. Some links to other sites provide inaccurate information. You can always check Kentucky's legistlature to get the correct SOL for specific debts.

http://credit.about.com/od/statuteoflimitations/a/entirestatesol.htm

[kjel]

Settle the charge off. Your score will likely drop because the creditor will report recent activity, but as someone pointed out it is absolutely killing your overall credit utilization. Once it reports paid, you should see a bump within a couple of months provided that your other cards have low utilization. I recently settled a $1500 charge off that happened in 2009 for $650. I lost 35 points when the creditor updated to it being in a settlement plan, but the month after I paid it and it updated paid, close, zero balance I got 32 points back as it was no longer factoring in egregious utilization. YMMV.

[Anonymous]

Thanks for the advice; Much appreciated. The utilization makes perfect sense, because I believe they are still doing some kind of reporting every month thats keeping my score down. 

[Anonymous]

Definately go after the Charge Off.

I would recommend sending a Pay for Delete rather then just paying or settling.

[SunriseEarth]

---

@Anonymous wrote:

Definately go after the Charge Off.

I would recommend sending a Pay for Delete rather then just paying or settling.

---

+1.   OP, attempt a PFD.  However, even if all they can do is update this to "Paid/Settled" and report that balance as zero, you will see a score boost since your UTIL will improve.   You can definitely attempt GW removal if you do settle.   

OP, out of curiousity, what was the original CL on the charged-off CC?

[Anonymous]

I believe the original credit limit was 3000 or 3500. I negotiated a settlement with them about a year ago and the lowest they said they would go was 1800 and something. Then they sent me a settlement letter full of typographical errors, so I called it off. This time I've got them down to 1550, and have a good settlement letter. Maybe I could do a PFD letter and show them that we were going to settle for 1550, but if they would do a PFD then I would pay them 1850. Does that sound like something that might work? Or would it backfire for the current settlement offer if they know I have more money than 1550. All of the reps over the phone will not even entertain the possibility of a PFD or even a paid in full balance settlement. 

[SunriseEarth]

---

@Anonymous wrote:

I believe the original credit limit was 3000 or 3500. I negotiated a settlement with them about a year ago and the lowest they said they would go was 1800 and something. Then they sent me a settlement letter full of typographical errors, so I called it off. This time I've got them down to 1550, and have a good settlement letter. Maybe I could do a PFD letter and show them that we were going to settle for 1550, but if they would do a PFD then I would pay them 1850. Does that sound like something that might work? Or would it backfire for the current settlement offer if they know I have more money than 1550. All of the reps over the phone will not even entertain the possibility of a PFD or even a paid in full balance settlement. 

---

I probably wouldn't offer more for a PFD.   PFDs aren't very common from COs, but not unheard of, so I'm not sure how much effort you'd like to put into it.   Who is the OC?

[taxi818]

Listen carefully. Settling will not boost your score. You either need to pay for delete or nothing. Or just wait until baddies die. Keep those payments on time. As soon as major derog gone your score will shoot up you are on right track. Patience is key. 

[taxi818]

Sorry after seeing you got derog reporting monthly. Yes that one settle. For sure. To close it. If had more info about all your baddies. Medicals. Good. They will delete. So yes that charge off is killing you. 

[SunriseEarth]

---

@taxi818 wrote:

Listen carefully. Settling will not boost your score. You either need to pay for delete or nothing. Or just wait until baddies die. Keep those payments on time. As soon as major derog gone your score will shoot up you are on right track. Patience is key. 

---

Looks like you added to this right below, fortunately.   If you have a CO that's still reporting a balance, settling will absolutely help you!   When I settled on mine, my UTIL dramatically improved and my scores went up 30 points.