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Established Contributor
VirtualCuriosity
Posts: 677
Registered: ‎09-10-2010
0

Will a PFD actually hurt my score?

I know morally, I am going to pay for this "Charge Off" on my report soon.   But,  I am curious as to how it will affect my score (635 at moment). 

 

I am starting the process of rebuilding my score after YEARS of a very bad personal finance era.  Since then, things have turned around.  Anyway, here is this particular account situation:

 

-Chrysler Financial charged off $688

-I was consistently 60 days late for 8 reporting months straight.

-I was attempting to make the 400 pymnt over the phone and a lady who was very upset with me said 688 in full immediately or she would CO the account.  I pled for 400 that day and 288 a week later.  I'll be danged that she hung up on me as I was debating with her, without taking the 400 I was trying to pay.  I am not feeling sorry for me because after all, I had shown them a terrible pymt history.

 

-The Account now shows opened in 2003

-Shows 8 times 60 days late

-Shows Mar. 2010 last activity

 

Should I try a PFD letter?  Or, would it be better FICO score wise to just try to PIF and have the account remain on report?

 


TU98 700, TU08 700, EQ 733, EX 706 (As of 8/2014) - Personal Goal = 760+

Gardening since 8-1-14












Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: Will a PFD actually hurt my score?

With that many 60 lates, I would say go for the PFD.


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+

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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!
Valued Contributor
Datx
Posts: 1,051
Registered: ‎05-20-2010
0

Re: Will a PFD actually hurt my score?

A removal of the charged off account is always going to be better. A paid charge off is pretty much the same as a unpaid chargeoff, its still going to affect your score. So try a PFD first before paying it off. Who is reporting that account btw? It almost sounded like you clashed with a CA and the rep didnt like your settlement offer of $400.

TU: 603 – EQ: 569 – EX: N/A – May 2010

Established Contributor
VirtualCuriosity
Posts: 677
Registered: ‎09-10-2010
0

Re: Will a PFD actually hurt my score?

Thanks for the response.  I will try the PFD.  

 

To answer your question, it was a woman from Chrysler Financial, not a CA.  I had fallen into a bad time with loss of income and fell behind on payment by 60 days.  I continued to make the 400 payment because I only owed 3k or so.  Obviously the payment was 60 days behind each time I made the single payment and I knew they wouldn't repossess it.  Credit was the least of my worries at that time.  Anyway, the lady called and told me to pay the full 688 balance or else.  I told her I only had the 400 in account, unless she could wait until my next check.  She said they were tired of doing that every month of late.  We got in a heated debate because I grew tired of being belittled, plus I caught her in mathmatical errors.  She seemed frustrated and literally hung up on me.  I thought that I would just wait a little longer and pay the 688, but when I called, I was told it was charged off.  I was shocked that they did, not because I had a great history over that past 8 mos., but because they  could have had 400 that day and I would have only owed 288 left.  I am positive she was just sticking it to me for being such a pain to her.  Again, I'm not bitter because it was my debt to pay and I wasn't doing it on time.  Now, I am back to financial health and trying to clean up my mess.


TU98 700, TU08 700, EQ 733, EX 706 (As of 8/2014) - Personal Goal = 760+

Gardening since 8-1-14













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