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Sears - OC - Charge off -PFD or DV? Where to start?

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SecondWind
Valued Member

Sears - OC - Charge off -PFD or DV? Where to start?

Hi everyone.

 

My Sears Card reports as a CO on my CR but still reports a balance which dings my util.  I am past SOL and I do have the money to PIF if needed.  Any advice on where to start so I don't awaken a sleeping giant?  The debt is legit but I would be interested in a settlement offer because I want that balance reported as zero.  Can I skip the DV step here and go right to PFD?  Should I call them first since they still own the debt?  I guess I am looking for a potentially expedient solution.

 

 

Balance reported is $1402 and Sears still owns this debt.

 

Thanks for all your help in the past!


Starting Score (January 2013): 537
Current Score: 691
Goal Score: 700


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Message 1 of 11
10 REPLIES 10
BungalowMo
Senior Contributor

Re: Sears - OC - Charge off -PFD or DV? Where to start?



@SecondWind wrote:

Hi everyone.

 

My Sears Card reports as a CO on my CR but still reports a balance which dings my util.  I am past SOL and I do have the money to PIF if needed.  Any advice on where to start so I don't awaken a sleeping giant?  The debt is legit but I would be interested in a settlement offer because I want that balance reported as zero.  Can I skip the DV step here and go right to PFD?  Should I call them first since they still own the debt?  I guess I am looking for a potentially expedient solution.

 

 

Balance reported is $1402 and Sears still owns this debt.

 

Thanks for all your help in the past!


First, you cannot DV the OC, olnly a CA.   

 

How old is the DOFD??  When is this due to drop off??

 

Those are what you need to find out first.

BK 7 discharge 06.24.2020 No Fico score at all. Smiley Sad
Message 2 of 11
SecondWind
Valued Member

Re: Sears - OC - Charge off -PFD or DV? Where to start?

DOFD is 04-2004.  This won't drop off until 2011.  I need the utilization to drop so my FICOs can rise!  So you think I should PFD then?  Call first or write a letter?  I can PIF but of course, would rather not.  Thanks.

Starting Score (January 2013): 537
Current Score: 691
Goal Score: 700


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Message 3 of 11
invza1
Valued Member

Re: Sears - OC - Charge off -PFD or DV? Where to start?

If it were me and I had $1400 to invest in my credit, I'd use that money to get a secured credit card.  As far as utilization what's the difference if you paid off Sears or just had your available credit total rise $1,400? Then in 2011 the Sears will fall off and you would have a 2 year old positive credit card tradeline. What's more, whoever gives you the card will probably give your money back after a year of on-time payments.  

 

 

Message 4 of 11
SecondWind
Valued Member

Re: Sears - OC - Charge off -PFD or DV? Where to start?

My utilization is what is holding back my FICO scores.  I have already established a few good credit cards with high credit limits that are more than 2 years old now, all with low utilization (under 10%).  Unfortunately, I have a total of 4 CO with this Sears CC being one of them, that report a balance (the other three are Cap 1).  WIth all four of the CO CCs reporting balances, my total utilization in a whopping 151%!  If I can get those four CO to report a zero balance, my utilization drops to 10% or lower and my FICOs should take off (according to the myFICO Reveal Your FICO Future). 

 

Having the money to PIF or PFD makes sense to me rather than wait 2 more years for the drop since I would like to buy a house this year and get decent rates.  The loan officer I talked to at B of A said I could not have any collections or CO on my CR to get a loan there.

 

So, would anyone recommend a call to Sears to get the ball rolling?  I think I would call them up and try to get satisfactory payoff terms, or even a PIF,  but I would want those terms in writing if I could get a PFD.  Would writing a letter be better than calling even though I would be dealing with the OC?

 

Thanks everyone.


Starting Score (January 2013): 537
Current Score: 691
Goal Score: 700


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Message 5 of 11
invza1
Valued Member

Re: Sears - OC - Charge off -PFD or DV? Where to start?

Maybe it's me but I don't see the difference between:

 

Option 1. adding $1,400 to your available credit 

 

and

 

Option 2. getting Sears to report as zero (if they won't remove the tradeline altogether)

 

Sure I'd accept option 2 over 1 but Sears may not accept your offer so then you'd need a plan B anyway.

 

Also, is the Sears TL on all 3 CRs or just one or two?

 

I personally don't see anything wrong with calling Sears, since they are the OC. You are sure this is out of SOL, right?

Message 6 of 11
Anonymous
Not applicable

Re: Sears - OC - Charge off -PFD or DV? Where to start?

You can offer a PFD settlement.  The PFD can be a hybrid GW - PFD, asking to settle and remove the lates, CO and derogs.  Otherwise you can offer a PFD for complete TL removal.  Remember, the OC is not required to report the account.  It is their option to report or to delete and this is completely legit.

 

Personally, I would rather remove the derog, up to deleting the entire TL.  Even if you take an AAoA hit or lose the oldest account, remember that the FICO score is one component of credit, but so is the actual contents.  And an unpaid, CO is going to hurt you for a long time.  It dissipates over time, but many primes will treat you like the red headed step child (no offense to any such persons).

 

Not to mention, this is a legit debt and you should pay it if you can, IMO.  Sometimes it's not what you "have to do" but it is the right thing to do.

Message Edited by txjohn on 05-05-2009 08:21 AM
Message 7 of 11
SecondWind
Valued Member

Re: Sears - OC - Charge off -PFD or DV? Where to start?

Thanks for the discussion everyone.

 

I posted this question here because I haven't had any communication with Sears in years and I wanted to bounce some ideas off the board regarding paying off this account and, more importantly, to see if anyone raised any red flags when it comes to dealing directly with Sears as the OC with the account being out of SOL. It looks like problems and difficulties people on the board are encountering are with the CA that Sears uses.

 

invza1, I understand your point about adding $1400 to available credit; it's just that I don't want to take the new account or new inquiry hits.

 

 

I think I will call them today to see what they say about the account and will let you guys know what I find out.  Thanks for bringing up some good points, txjohn.


Starting Score (January 2013): 537
Current Score: 691
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Message 8 of 11
Anonymous
Not applicable

Re: Sears - OC - Charge off -PFD or DV? Where to start?

Is there any CA listed? If not, this may be perfect reason to deal with Sears and pay in full/settle. This will prevent having a CA added to your report.

 

IMO, if you want a PFD, go for it first. If they decline, then offer a settlement amount. Start low, you can always offer more, but hard to offer less.

Message 9 of 11
SecondWind
Valued Member

Re: Sears - OC - Charge off -PFD or DV? Where to start?

No CA, and it's been that way for years, so i guess I shouldn't complain!  I would like to move quickly on this before they sell it off and it becomes more complicated.  Right now, I'm trying to find a good contact number for Sears but am having a hard time....

 

Wish me luck and I'll be sure to update!


Starting Score (January 2013): 537
Current Score: 691
Goal Score: 700


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Message 10 of 11
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