topic Re: Help! Charge off question. in Rebuilding Your Credit

Help! Charge off question.

Ajones22 — Tue, 26 Apr 2022 20:25:18 GMT

I have a charge off on my credit report that is updated on a monthly basis. It was for a car loan and I settled with the attorneys in order to pay the loan back.10k is owed now. I have tried to get an apartment and they denied me because they stated I had serious delinquent debt. I also tried to apply for the Discover IT card and they denied me as well for the same reason. When will the charged off account finally be removed from my credit report? Its been on my report since 2012 but the chargeoffs didnt begin until 2016.

Re: Help! Charge off question.

FireMedic1 — Tue, 26 Apr 2022 20:39:50 GMT

CO's will update until $0 balance. Since it isnt paid yet doesnt help much. Once settled it will help some. Since you mentioned lawyers. Did they go legal on you? It will fall off 7yrs from the DoFD. Or the first late date (month/year) and it never became current. It will show on your real credit reports at annualcreditreport.com. Hold back on apping for cards for now unti its done. A CO ranks right under a BK. But only last 7yrs. Welcome to the forums.

Re: Help! Charge off question.

Tryinghardtoimprove — Wed, 27 Apr 2022 04:02:08 GMT

Hi. I'm piggy backing off of your comments on this post. I see how paying his CO greatly improved his credit score. My question is I have a charge of with Capital One for $1600. Should I pay in full or settle for half? It's from 2017 but reporting monthly.

Also where is everyone finding their FICO 9 scores. I've been looking all night on my paid subscription thru experian paid account.

Thanks so much

Re: Help! Charge off question.

FireMedic1 — Wed, 27 Apr 2022 08:48:15 GMT

Here on MyFICO you get all 28 or Credit.com. Its up to Cap1 on what % they will settle for. Older the lower the settle amount it will be. Dont expect lower than 30%. Settled or PIF it has to reflect a $0 balance. On your reports it will say Paid CO settled for less.

Re: Help! Charge off question.

Tryinghardtoimprove — Wed, 27 Apr 2022 11:26:06 GMT

Thanks. What I should have asked is does it benefit my score to settle in full CO vs settle for 50% CO? They are willing to let me pay 800, but if it will help my score more to pay the whole 1600 I will. Thanks

Re: Help! Charge off question.

FireMedic1 — Wed, 27 Apr 2022 13:02:47 GMT

Yep. Its has to say $0. The comment section on the account will say CO PIF or settled for less. Grab it.

Re: Help! Charge off question.

Tryinghardtoimprove — Wed, 27 Apr 2022 13:27:34 GMT

Will do. Thanks. I'll keep you updated. I just paid all my credit cards and loans off. About $18,000 worth of debt. I left a small bal 6% on one. Only one cc for $6K hit my report so far but my score went up 11 points. I'm looking forward to finally getting out of this credit trap and staying in good standing. Also I purchased the Experian Creditworks but not the Fico membership. Thats why I couldn't get my Fico 9. I'm purchasing this membership now.. Thanks for all the advice.

Re: Help! Charge off question.

Ajones22 — Wed, 27 Apr 2022 13:46:53 GMT

Yep they took me to court but I was able to settle with them.

Thanks so much for your advice. I appreciate it. 😊

Re: Help! Charge off question.

OmarGB9 — Wed, 27 Apr 2022 14:27:33 GMT

@Ajones22 wrote:
Yep they took me to court but I was able to settle with them.

Thanks so much for your advice. I appreciate it. 😊

So you say $10k is owed now, do you mean AFTER the settlement you STILL owe $10k, or do you mean that after negotiating via lawyers you settled for $10k and that's all you paid and your report now shows zero balance? It's unclear from your OP.

Re: Help! Charge off question.

Ajones22 — Wed, 27 Apr 2022 14:40:43 GMT

Yeah after the settlement I still owe a balance of 10k. It was actually more than that. So far I've paid off 6k of it. My report shows the remaining balance of 10k.

Re: Help! Charge off question.

lns1976 — Wed, 27 Apr 2022 14:59:07 GMT

@Ajones22 Get it paid down to $0 it will hurt a lot less. Then, based on the dates you have given, it should drop off your report next year.

Re: Help! Charge off question.

Ajones22 — Wed, 27 Apr 2022 15:02:20 GMT

Ok I understand. Thanks alot.

Re: Help! Charge off question.

Chestnut1 — Thu, 28 Apr 2022 14:02:44 GMT

@Ajones22 wrote:
I have a charge off on my credit report that is updated on a monthly basis. It was for a car loan and I settled with the attorneys in order to pay the loan back.10k is owed now. I have tried to get an apartment and they denied me because they stated I had serious delinquent debt. I also tried to apply for the Discover IT card and they denied me as well for the same reason. When will the charged off account finally be removed from my credit report? Its been on my report since 2012 but the chargeoffs didnt begin until 2016.

For the starters, You must pay Charge off to start reflecting that on your credit report as PAID in Full or Settled. However, it won't change your Original DoFD (Date of First Delinquency) or Charged off date. If it is set in 2016, then this account WILL stay on your report for full 7 years. Likely to fall off in 2023.

I went through the exact same experience and Here's my Timeline,

Date of First Delinquency 7/2015
Charged off ( ~2015)
Repo'ed 1/2016
Shown on reports as charged off
End of 2019. I paid in Full.
Current status Paid after charge off/Collection.
Item to fall off reports in summer 2022 ( It already dropped off from Experian. Waiting on TU and EQ to drop off in next 2 months)

Re: Help! Charge off question.

Trinzero — Thu, 28 Apr 2022 18:05:54 GMT

Sorry to ask for clarification, but I want to make sure I'm understanding; does the notation of paid for less hurt (other than on a possible manual review)?

Scorewise, would either payment option be the same end result?

Thanks for the topic OP. Fit what I was looking for =D

Re: Help! Charge off question.

OmarGB9 — Thu, 28 Apr 2022 22:07:42 GMT

@Trinzero wrote:
Sorry to ask for clarification, but I want to make sure I'm understanding; does the notation of paid for less hurt (other than on a possible manual review)?
Scorewise, would either payment option be the same end result?
Thanks for the topic OP. Fit what I was looking for =D

1. No, comment denoting PIF/settled for less does not hurt. Manual review may raise some eyebrows, but really only on a mortgage app.

2. Yes, score-wise, either option is the same result.

Re: Help! Charge off question.

7774x — Fri, 29 Apr 2022 04:06:20 GMT

@FireMedic1 wrote:
CO's will update until $0 balance. Since it isnt paid yet doesnt help much. Once settled it will help some. Since you mentioned lawyers. Did they go legal on you? It will fall off 7yrs from the DoFD. Or the first late date (month/year) and it never became current. It will show on your real credit reports at annualcreditreport.com. Hold back on apping for cards for now unti its done. A CO ranks right under a BK. But only last 7yrs. Welcome to the forums.

An Ollo ,Cap one ,Avant , sub prime cards will accept you , even with c/o on record

Re: Help! Charge off question.

lns1976 — Fri, 29 Apr 2022 13:15:08 GMT

@7774x It isn't about what the OP can get approved for with a CO on the record. Once it's paid it will have little effect on his applications for any prime cards.

And until paid it is going to damage the OP's score.

@FireMedic1 is correct in advising the OP to wait and pay off the CO before applying for new cards.

And I can't say a lot because I applied for cards with an unpaid CO on my report and I got the subprime ones but if I had waited I could have applied and received better cards and I know that now.

Use other peoples 20/20 hindsight so you learn from others mistakes.

Re: Help! Charge off question.

7774x — Fri, 29 Apr 2022 13:37:31 GMT

@lns1976 wrote:
@7774x It isn't about what the OP can get approved for with a CO on the record. Once it's paid it will have little effect on his applications for any prime cards.

And until paid it is going to damage the OP's score.

@FireMedic1 is correct in advising the OP to wait and pay off the CO before applying for new cards.

And I can't say a lot because I applied for cards with an unpaid CO on my report and I got the subprime ones but if I had waited I could have applied and received better cards and I know that now.

Use other peoples 20/20 hindsight so you learn from others mistakes. ;

I had the sub prime cards ,dumped after fico scores went over 700..now have Citi ,Chase SoFi Disc..If your credit fits sub prime ,use it until fico improves..hard to be without a credit card in these times..but do what works for you