Rebuilding Your Credit

[Kevin5974]

Today marks the very first time that I am actually settling an account as opposed to my M.O. of waiting the 7 seven years or disputing in hopes that it falls off. I had a Zales Credit Card opened in 2006 that was charged off in 2007. The balance ballooned up to $1,100.00 and CitiBank has never sold the account. I believe they update monthly so I am thinking this has really been hurting my utilization, considering the credit limit was only $400.00. Nevertheless, I worked with a collection company by the name of Vision Financial Corp., who was collecting on behalf of Pinnacle Credit Services who was collecting on behalf of CitiBank. Unfortunately they have been unwilling to do any type of PDF. The account falls off in approximately 18 months so perhaps a little GW work will help. By the way, I offered a payment of just over 15% of the outstanding balance of $1,100.00. I was accepted for a payment of $181.00

[starry1]

That's a great settlement deal. If gw doesn't work you might try disputing it with the CRAs, they might decide its more trouble to update it and just delete instead. Then again, they might not.

[Kevin5974]

Yeah. Im finally at that point in the garden where I just wanna pay stuff off. If they remove it, they do but Im just glad to get one behind me..

[RobertEG]

I assume that both the OC and debt collector having reported?

If so, I dont see that the acceptance by one or the other of a PFD would reap substantial score gain, as the other reported major derog (CO by the OC,or collection by the debt collector) would still remain. So I dont think their reluctance to PFD is a major deal.

If you dont plan to app for new credit in the next 18 months, then both the CO and collection will fall at the same time.

Which leaves the remaining fact that CR exclusion does not take care or the issue of unpaid delinquent debt, it only shields it from view by a simple pull of your CR.

It would accept their generous settlement offer and become clear of the unpaid, delinquent debt, which can always come back to bite you.

[Kevin5974]

I had them clear the remaining debt. Citibank has never sold this debt so it will report as settled with them.