topic Re: this 23yo needs help!! need to bring this 502 up! advice on what to pay off?? in Rebuilding Your Credit

this 23yo needs help!! need to bring this 502 up! advice on what to pay off??

rayb_satx — Thu, 14 May 2009 04:40:58 GMT

I decided I really need to be concerned about my future now, and im afraid I might be a little to late. I was careless and immature the last few years and I have a few accounts that are now charged off... but are now being reported also from a collection agency that bought the accounts.

I came across some money and want to clean up whatever I possibly can here but I need some help....

1) I have 2 accounts that are still "active"(not charged off) and its my understanding to pay these off first. With these, if I can afford to pay off the entire balance, is there any incentive for me to do that versus settling for less??? If so, is the benefit of doing so really worth the extra money I will pay versus say settling for 50% of the balance?

2) on the accouns that are charged off... they are now being reported by the collection agencies. Someone told me that there wouldnt be any need to try and pay off these collections because once its charged off its "done" so to speak and I cant really do anythign about it. Is this true? or would it be beneficial to actualy pay off these credit agencies even though they were not the ones I had the bad debt with? IF so, again... should I settle for as little as possible or pay off in full.

I have heard different things and need to know whats truly best for me. im only 23, and would like to get this fixed as much as i possibly can... but obviously I would like to save as much as I possibly can because I may not be able to pay on all the accounts, and the less I have to pay towards the accounts... the farther the money that i do have will work for me.

Thanks,

Ray

Re: this 23yo needs help!! need to bring this 502 up! advice on what to pay off??

nothingman02 — Thu, 14 May 2009 04:52:14 GMT

Hi and welcome. Please read the abbreviations and obtain your CBRs from ACR.com and study them closely.

1) I have 2 accounts that are still "active"(not charged off) and its my understanding to pay these off first. With these, if I can afford to pay off the entire balance, is there any incentive for me to do that versus settling for less??? If so, is the benefit of doing so really worth the extra money I will pay versus say settling for 50% of the balance?
Try a PFD. f it has just been closed by the OC, settling would is okay.Else PIF.It willl help you in the future for a GW.

2) on the accouns that are charged off... they are now being reported by the collection agencies. Someone told me that there wouldnt be any need to try and pay off these collections because once its charged off its "done" so to speak and I cant really do anythign about it. Is this true? or would it be beneficial to actualy pay off these credit agencies even though they were not the ones I had the bad debt with? IF so, again... should I settle for as little as possible or pay off in full.
Its not true. If within SOL and you can PIF, DV these CAs. Later, you should be looking at a PFD. Else settling or PIF.A paid collection is as bad as an unpaid collection and hence PIF would not netyou a score gain. PFD will most likely.

I have heard different things and need to know whats truly best for me. im only 23, and would like to get this fixed as much as i possibly can... but obviously I would like to save as much as I possibly can because I may not be able to pay on all the accounts, and the less I have to pay towards the accounts... the farther the money that i do have will work for me.

Thanks,
Ray

Re: this 23yo needs help!! need to bring this 502 up! advice on what to pay off??

rayb_satx — Thu, 14 May 2009 06:26:59 GMT

ok i was browsing the forum and have a few questions..

would I still need to DV if i know they are valid?

am i understanding that if I cant PFD with the CA then its best just to not pay at all and just leave the collection open?

and the 2 credit cards that I have that are closed but NOT charged off, I should try to PFD but if not possible, its my understanding then that it would NOT be beneficial to PIF and would be best to just settle for less?

here is an example of whats showing on the same debt:

credit card 1

Account Name SST/COLUMBUS BANK&TRUS
Account # 403624000752XXXX
Account Type Credit Card - Revolving Terms
800-388-1806 Balance
PO BOX 3997
SAINT JOSEPH, MO 64503
Past Due
Date Opened 2/1/2006
Account Status Closed
Mo. Payment
Payment Status Account transferred to another
office
High Balance $2,174.00
Limit $0.00
Terms Revolving
Comments Credit line closed-grantor requestreported
by subscriber

Account Name SST/CIGPF1CORP
Account # 1946XXXX
Account Type Credit Card - Revolving Terms
800-210-6385 Balance $2,174.00
4315 PICKETT RD
SAINT JOSEPH, MO 64503
Past Due $2,174.00
Date Opened 2/1/2006
Account Status Closed
Mo. Payment
Payment Status Seriously past due date / assigned to
attorney, collection agency, or credit
grantor's internal collection
department
High Balance $2,174.00
Limit $0.00
Terms Revolving
Comments

CREDIT CARD 2

Account Name CAP ONE
Account # 48623625XXXX
Account Type Credit Card - Revolving Terms
No Phone Provided Balance
PO BOX 85520
RICHMOND, VA 23285
Past Due
Date Opened 3/1/2005
Account Status Closed
Mo. Payment
Payment Status Account transferred to another
office
High Balance
Limit $700.00
Terms Revolving
Comments Transferred to another lender or
claim purchased

Account Name PORTFOLIO RECVRY&AFFIL
Account # 486236253906XXXX
Account Type Unknown - Credit Extension, Review,
Or Collection
800-772-1413 Balance $1,128.00
120 CORPORATE BLVD STE 1
NORFOLK, VA 23502
Past Due $1,128.00
Date Opened 3/1/2008
Account Status Closed
Mo. Payment
Payment Status Seriously past due date / assigned to
attorney, collection agency, or credit
grantor's internal collection
department
High Balance
Limit
Terms 1 Month
Comments Subscriber reports dispute resolved -
consumer disagrees

CREDIT CARD 3

Account Name GEMB/JCP
Account # 399138XXXX
Account Type Revolving Charge Account
800-542-0800 Balance
PO BOX 984100
EL PASO, TX 79998
Past Due
Date Opened 10/1/2005
Account Status Closed
Mo. Payment
Payment Status Account transferred to another
office
High Balance
Limit $0.00
Terms Revolving
Comments Transferred to another lender or
claim purchased

Account Name LVNV FUNDING LLC
Account # 600889399138XXXX
Account Type Unknown - Credit Extension, Review,Or Collection
Balance $897.00
Past Due $897.00
Date Opened 8/1/2008
Account Status Closed
Mo. Payment
Payment Status Seriously past due date / assigned to
attorney, collection agency, or credit
grantor's internal collection
department
High Balance
Limit
Terms 1 Month

shouldnt these amounts be the same when they transfer over? and what options would I have to get these things cleaned up as much as possible? these are the accounts that I have that looke liek to me I dont really have much I can do

Re: this 23yo needs help!! need to bring this 502 up! advice on what to pay off??

203bravo — Thu, 14 May 2009 12:13:33 GMT

You DV CAs only 100% of the time to assure that balance is correct and they are authorized to collect this debt. You don't DV OCs.

Of the accounts you have listed it only appears that CapOne has sold the account - the others are simply assigned to a CA.

The theory that you either PFD or don't pay is not entirly correct. A decision that you must make. No paying without getting it removed will not result in a score increase, but collections will continue. These will haunt your for a long time. Also if you are within the SOL - even a simple DV may result in a legal action, so make sure you can PIF if they seek that route.

Re: this 23yo needs help!! need to bring this 502 up! advice on what to pay off??

rayb_satx — Thu, 14 May 2009 17:15:09 GMT

ok thanks for the info.

I have another citi card that is closed, but still in their internal collections. it has not been sold or anything and they are willing to settle for less. Would it be better to pay this account off in full? or just settle since this account is closed anyways

Re: this 23yo needs help!! need to bring this 502 up! advice on what to pay off??

Anonymous — Thu, 14 May 2009 17:28:38 GMT

Settling an account will result in the account being reported as "settled" or something to that effect. An account marked settled is score the same as an account marked CO.

On the other CO accounts, are they reporting a balance by the OC? Are they within SOL? If the OC owns still, you can try to get the OC to pull from the CA and accept payment.

Re: this 23yo needs help!! need to bring this 502 up! advice on what to pay off??

Anonymous — Thu, 14 May 2009 17:39:52 GMT

how do you know the can legally collect....wjat will the letter say in response to the DV?