Rebuilding Your Credit

[js0319]

This was only 10 days ago - but I settled on a BofA CC CO with a balance of $955 for $402. Earlier this week, I received a SW update saying that potentially negative information had been reported by BofA on the account. I was able to use a free CR site (Experian CR) to view the change on the account, and it looks like what happened is they updated the balance on the card to reflect what I had paid on it - so the new balance is reporting as $553. When I spoke with the collector, the agreement was to settle on the account fort $402 and I was told that the balance would update to $0, also reflecting that collections would cease on the account.

After pulling the CR, I called the number listed for BofA on the CR and spoke with a representative - apparently the card was through FIA Account Services. I asked her about the reporting, and she said that the information is correct as far as what's listed, and it usually takes up to 90 days to reflect a $0 balance on the card if you settled through a 3rd party. I expected the balance to reflect $0, and the CR to reflect "Paid - Settled for less than the amount owed" or something like that.

Should I believe anything I just heard? They were so quick to report a payment, thereby reporting a key derogatory by updating the balance - but they, for some reason, couldn't reflect the balance as $0 yet? Let me know if anyone has had any experience with anything like this.

[aerochick31093]

I settled an account with a CA and it updated the 1st time to show the difference between what I paid and  the original balance on the account. I believe it was about 30 days later that it updated to a zero balance and was marked paid in full. It just takes time sometimes for it to update to zero balance.

[rckstrscott]

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js0319 wrote:

This was only 10 days ago - but I settled on a BofA CC CO with a balance of $955 for $402. Earlier this week, I received a SW update saying that potentially negative information had been reported by BofA on the account. I was able to use a free CR site (Experian CR) to view the change on the account, and it looks like what happened is they updated the balance on the card to reflect what I had paid on it - so the new balance is reporting as $553. When I spoke with the collector, the agreement was to settle on the account fort $402 and I was told that the balance would update to $0, also reflecting that collections would cease on the account.

After pulling the CR, I called the number listed for BofA on the CR and spoke with a representative - apparently the card was through FIA Account Services. I asked her about the reporting, and she said that the information is correct as far as what's listed, and it usually takes up to 90 days to reflect a $0 balance on the card if you settled through a 3rd party. I expected the balance to reflect $0, and the CR to reflect "Paid - Settled for less than the amount owed" or something like that.

Should I believe anything I just heard? They were so quick to report a payment, thereby reporting a key derogatory by updating the balance - but they, for some reason, couldn't reflect the balance as $0 yet? Let me know if anyone has had any experience with anything like this.

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I think you answered your own question with your first statement. 'This was only 10 days ago'

I have jumped the gun, and made conclusions, way premature on accounts while going through this process. My personal rule of thumb has been, 60 days unless I REALLY needed something to reflect (like as I was going through the start of the mortgage process)

While I was doing the meat and potatoes of my credit repair, I allowed 2 months before I started getting antsy on updates like PFD, balances, settled ect..

-scott

[proudnavymom]

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js0319 wrote:

This was only 10 days ago - but I settled on a BofA CC CO with a balance of $955 for $402. Earlier this week, I received a SW update saying that potentially negative information had been reported by BofA on the account. I was able to use a free CR site (Experian CR) to view the change on the account, and it looks like what happened is they updated the balance on the card to reflect what I had paid on it - so the new balance is reporting as $553. When I spoke with the collector, the agreement was to settle on the account fort $402 and I was told that the balance would update to $0, also reflecting that collections would cease on the account.

After pulling the CR, I called the number listed for BofA on the CR and spoke with a representative - apparently the card was through FIA Account Services. I asked her about the reporting, and she said that the information is correct as far as what's listed, and it usually takes up to 90 days to reflect a $0 balance on the card if you settled through a 3rd party. I expected the balance to reflect $0, and the CR to reflect "Paid - Settled for less than the amount owed" or something like that.

Should I believe anything I just heard? They were so quick to report a payment, thereby reporting a key derogatory by updating the balance - but they, for some reason, couldn't reflect the balance as $0 yet? Let me know if anyone has had any experience with anything like this.

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This happened to me too.  They were very quick to update the balance minus the amount that I paid for the settlement, but it was still showing a balance.  The next month when they updated it was updated to paid and with a 0 balance.