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Will a PFD actually hurt my score?

Established Contributor

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?

 


TU713, EQ 731 , EX 726 (As of 12/13/14) - Personal Goal = 760

“Beware of little expenses. A small leak will sink a great ship” – Benjamin Franklin

Gardening since 3-26-15































3 REPLIES
Moderator Emeritus

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+
Take the myFICO Fitness Challenge

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!

June 2017 update: All scores over 820, just pure gardening now.
Valued Contributor

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.

CH7 Discharged: 4-14-16
Rebuilding in Progress.....
May 2016 - EX: 594, TU: 582, EQ: 619
July 2016 - EX: 629, TU: 600, EQ: 622
Established Contributor

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.


TU713, EQ 731 , EX 726 (As of 12/13/14) - Personal Goal = 760

“Beware of little expenses. A small leak will sink a great ship” – Benjamin Franklin

Gardening since 3-26-15