I don't know how US Bank handles PFD requests, but I can tell you, NO you would not be better off if they sold the debt. If it goes to a collection agency, you can (will likely) end up with both a charge off and collection on your reports for this one account, hurting your score more. The original creditor does not remove the charge off when they sell a debt, they simply update the balance to zero - but the account remains derogatory and continues to hurt.
What was the credit limit on that card? You say you owe $300 - that is also being calculated into your current utilization. If this amount is near or over the credit limit - it's also hurting a lot. If this is the case case, paying the balance owed could actually help your your score by bringing down util. Also, paying it off will officially close the account- preventing the creditor from continuous updates to the bureaus, allowing the item to age - lessening the damage to your score over time.
What was the credit limit on that card? You say you owe $300 - that is also being calculated into your current utilization. If this amount is near or over the credit limit - it's also hurting a lot. If this is the case case, paying the balance owed could actually help your your score by bringing down util. Also, paying it off will officially close the account- preventing the creditor from continuous updates to the bureaus, allowing the item to age - lessening the damage to your score over time.
I agree. Also, after it's paid - you can bombard them with goodwill letters and hope it lands in the hands of some sympathetic soul. At least you won't have to worry about collections coming after you and the very worst they can do is say is no.
I have one, almost 4 year old chargeoff on my EX and TU reports-- my only negative (PFD refused), yet my scores are now over 750. The account was reporting 113% individual util before I paid it and the OC was updating as late every few months.
I gained 18 points after it reported paid charge off /zero balance. I know I'm still losing at least 50 points because of its existence - but I'm still better off; no collection item (and no worry about one popping up), and it's not updating anymore. I still send goodwill letters in hopes they'll get tired of my sob story and just remove it.
Paid charge offs also look way better to lenders upon a manual review of your reports than an unpaid chargeoff would.
I have one, almost 4 year old chargeoff on my EX and TU reports-- my only negative (PFD refused), yet my scores are now over 750. The account was reporting 113% individual util before I paid it and the OC was updating as late every few months.
I gained 18 points after it reported paid charge off /zero balance. I know I'm still losing at least 50 points because of its existence - but I'm still better off; no collection item (and no worry about one popping up), and it's not updating anymore. I still send goodwill letters in hopes they'll get tired of my sob story and just remove it.
Paid charge offs also look way better to lenders upon a manual review of your reports than an unpaid chargeoff would.
It being so recent may give you a stronger stance in your goodwill letter - you didn't wait years to pay what you owe, you paid it "as soon as you overcame your financial hardship and became stable because you would never, willingly default on your financial responsibilities" - or something to that effect.
I cant help with an adress, but i wish you the best of luck!
I cant help with an adress, but i wish you the best of luck!