topic Re: Chase Charge Off - Pay in full or settle? in Rebuilding Your Credit

Chase Charge Off - Pay in full or settle?

Anonymous — Mon, 12 Jul 2021 21:50:02 GMT

I'm going to setup a payment plan to pay off my CC debt.

The account has already been charged off.

I'm trying to figure out if it makes sense to pay off the full balance or negotiate to settle for something less.

I understand if I settle for something less, that will be indicated on my credit reports.

My question is, under what circumstances and how does that affect me moving forward?

When would it be more beneficial to settle for less than the full balance and when would be it more beneficial to pay the full balance?

Ideally I think I'd like to be able to get another Chase CC at some point since it seems their rewards are significantly better than other CC companies, but correct me if I'm wrong.

Also, I asked the lawfirm how much they would be willing to accept in total, and they said they couldn't tell me until I tell them my monthly income and expenses. My income has a base salary and larger commission portion of it, so I'm not sure how to go about negotiating this. Any advice/insights/suggestions on this would be amazing!

Thank you!

Re: Chase Charge Off - Pay in full or settle?

mycreditscoreisfair — Tue, 13 Jul 2021 01:18:31 GMT

There's not much difference between a settlement and paying in full once it's been charged off, in my opinion. The charge off will remain for 7 years and hurt your scores either way. Obviously, paying in full will look better upon a manual review, but to my knowledge the scoring systems don't pick up on whether accounts are settled or paid in full. You'll also have to report the amount that was forgiven on your taxes.

On the bright side, in full may give you a better/quicker chance at getting back in good graces with Chase; although nothing is guaranteed.

I settled with Chase (through Client Services) for 30% of the balance I owed. It knocked off about $8,500. I settled because it was way quicker to pay the settled amount than the full balance - which probably would have taken me an extra 9-12 months. Getting it removed quicker will help my utilization (and hopefully boost my scores); which is just about the only thing I can control left on my credit report.

Re: Chase Charge Off - Pay in full or settle?

OmarGB9 — Tue, 13 Jul 2021 03:42:52 GMT

One thing to consider is that if you're hoping to get back in with Chase, if they DO let you back in, you MUST pay them in full. Otherwise you'll be waiting YEARS for them to let you back in if you settle for less.

Said another way, you have slightly better odds of getting back in if you pay them in full vs settling.

Re: Chase Charge Off - Pay in full or settle?

Anonymous — Tue, 13 Jul 2021 14:40:47 GMT

@mycreditscoreisfair wrote:
There's not much difference between a settlement and paying in full once it's been charged off, in my opinion. The charge off will remain for 7 years and hurt your scores either way. Obviously, paying in full will look better upon a manual review, but to my knowledge the scoring systems don't pick up on whether accounts are settled or paid in full. You'll also have to report the amount that was forgiven on your taxes.

On the bright side, in full may give you a better/quicker chance at getting back in good graces with Chase; although nothing is guaranteed.

I settled with Chase (through Client Services) for 30% of the balance I owed. It knocked off about $8,500. I settled because it was way quicker to pay the settled amount than the full balance - which probably would have taken me an extra 9-12 months. Getting it removed quicker will help my utilization (and hopefully boost my scores); which is just about the only thing I can control left on my credit report.

In what instances are manual reviews done?

Why is there no difference once the account is charged off?

Re: Chase Charge Off - Pay in full or settle?

Anonymous — Tue, 13 Jul 2021 14:41:52 GMT

@OmarGB9 wrote:
One thing to consider is that if you're hoping to get back in with Chase, if they DO let you back in, you MUST pay them in full. Otherwise you'll be waiting YEARS for them to let you back in if you settle for less.

Said another way, you have slightly better odds of getting back in if you pay them in full vs settling.

Is it worth trying to get back in with Chase?

It seems their CCs are much much better than other companies but maybe that's not true?

Re: Chase Charge Off - Pay in full or settle?

FireMedic1 — Tue, 13 Jul 2021 23:25:57 GMT

@Anonymous wrote:
@mycreditscoreisfair wrote:
There's not much difference between a settlement and paying in full once it's been charged off, in my opinion. The charge off will remain for 7 years and hurt your scores either way. Obviously, paying in full will look better upon a manual review, but to my knowledge the scoring systems don't pick up on whether accounts are settled or paid in full. You'll also have to report the amount that was forgiven on your taxes.

On the bright side, in full may give you a better/quicker chance at getting back in good graces with Chase; although nothing is guaranteed.

I settled with Chase (through Client Services) for 30% of the balance I owed. It knocked off about $8,500. I settled because it was way quicker to pay the settled amount than the full balance - which probably would have taken me an extra 9-12 months. Getting it removed quicker will help my utilization (and hopefully boost my scores); which is just about the only thing I can control left on my credit report.
In what instances are manual reviews done?

Why is there no difference once the account is charged off?

If you apply and the computer is programmed for a real person to go over your reports. Then its a manual review. The CO will count against you either way points wise. If you settle it will say on your reports settled for less than amount owed. If you pay the entire balance. Then it will say account paid in full. So add up the responces above. If you pay it off in full. You may have a better chance it get back in. But Chase has a long memory. But the status CO will never change.

Re: Chase Charge Off - Pay in full or settle?

mycreditscoreisfair — Wed, 14 Jul 2021 02:05:28 GMT

@Anonymous wrote:
@mycreditscoreisfair wrote:
There's not much difference between a settlement and paying in full once it's been charged off, in my opinion. The charge off will remain for 7 years and hurt your scores either way. Obviously, paying in full will look better upon a manual review, but to my knowledge the scoring systems don't pick up on whether accounts are settled or paid in full. You'll also have to report the amount that was forgiven on your taxes.

On the bright side, in full may give you a better/quicker chance at getting back in good graces with Chase; although nothing is guaranteed.

I settled with Chase (through Client Services) for 30% of the balance I owed. It knocked off about $8,500. I settled because it was way quicker to pay the settled amount than the full balance - which probably would have taken me an extra 9-12 months. Getting it removed quicker will help my utilization (and hopefully boost my scores); which is just about the only thing I can control left on my credit report.
In what instances are manual reviews done?

Why is there no difference once the account is charged off?

Manuel reviews are often done at the request of the applicant, or they can be done when the lender deems it appropriate. That policy likely varies between lenders.

Once the loan has reached a 'charge off' status, that's the status. Whether it's paid in full or settled for less doesn't change the fact that it was charged off. Either way the balance will be reduced to $0.00 when settled or paid.

Re: Chase Charge Off - Pay in full or settle?

OmarGB9 — Wed, 14 Jul 2021 22:50:38 GMT

@Anonymous wrote:
@OmarGB9 wrote:
One thing to consider is that if you're hoping to get back in with Chase, if they DO let you back in, you MUST pay them in full. Otherwise you'll be waiting YEARS for them to let you back in if you settle for less.

Said another way, you have slightly better odds of getting back in if you pay them in full vs settling.
Is it worth trying to get back in with Chase?

It seems their CCs are much much better than other companies but maybe that's not true?

I can not answer that for you. Only you can decide whether it's worth it or not, and whether their cards are "better."

Re: Chase Charge Off - Pay in full or settle?

credbuilder84 — Fri, 23 Jul 2021 21:31:45 GMT

I had a CO with Chase. I settled for 10%.

I paid it because 10% is a good deal and they have not yet passed it onto collections. Basically I prevented another derog. If it was in collections already, I would only pay if they actually sued me.