Repaying charged off loan to remove derogatory credit reporting
History: My husband and I moved to Biloxi, MS after Hurricane Katrina to do disaster relief as missionaries. We returned home in 2008 jobless and clueless as to what was going on in the world (living in a disaster area isolates you). I applied for and received a $3500 loan on Prosper to buy a car so that we would both have vehicles to get to work once we found jobs. We had some savings and $2100 a month income.
Time passed and we still couldn't find work. Our savings was gone and we were living on the $2100 a month. I began to miss payments to Prosper. Then the $2100 a month ended abruptly. I wrote Prosper in June 2010 explaining we had no income and nothing but personal belongings and 2 older vehicles and there was no way we could pay. We were living in free housing supplied by the missions group we worked with.
My husband has finally been working 6 monthes and I ended up returning to school and have a paying internship. We don't have terrible credit scores but they aren't great either (660 range). We would like to buy a house when I get out of school so I would like to get right with Prosper and have the reporting cleaned up so that it doesn't show as charged off or derogatory. How should I go about dealing with this?
Re: Repaying charged off loan to remove derogatory credit reporting
You shouldl try to do a PFD with them. Maybe offer 50% to begin with. Shoot them a PFD offer and see what they counter back with.
Starting Score: 504 July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013 Goal Score: All Scores 760+, Newest goal 800+ Take the myFICO Fitness Challenge Current scores after adding $81K in CLs and 2 new cars since July 2013 EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.