Closed business account. Pay off or pay slowly?

[brendog]

I stopped paying my business credit card in February because I thought it was separate from my personal credit (it was a corporation, which I thought separated me). Surprise! In April, Chase closed the account and then filed it under my personal credit as 60 day delinquent. Score dropped -100 points. I immediately brought the Chase account to good standing to avoid a 90 day. However, there is still a large balance. I have the money to pay it off, but not sure if that is wise, credit-wise. What should I do now to heal my credit score fastest? Pay it off 100% or pay it off on time a while?

[Pikaboo-icu]

Welcome to My Fico

If it were me I would pay it off and then submit a request to Chase (call first, if no joy write) asking them to remove the lates.

They may not be willing but if you pay it off, they might be kind enough to remove them.

You could even call first, explain the mistake, tell them you can PIF and ask if they can remove them. 

Good Luck..

[SouthJamaica]

---

@brendog wrote:

I stopped paying my business credit card in February because I thought it was separate from my personal credit (it was a corporation, which I thought separated me). Surprise! In April, Chase closed the account and then filed it under my personal credit as 60 day delinquent. Score dropped -100 points. I immediately brought the Chase account to good standing to avoid a 90 day. However, there is still a large balance. I have the money to pay it off, but not sure if that is wise, credit-wise. What should I do now to heal my credit score fastest? Pay it off 100% or pay it off on time a while?

---

Pay it off

[RobertEG]

Depending upon the terms of the business account, it may or may not qualify as being reportable to a consumer reporting agency as consumer, rather than business, debt.

I would advise consultation with an attorney specializing in consumer credit law, with the view of possibly challenging the reporting as consumer debt if you cannot use the card for any family or personal purchases.

[ToughFistFight]

---

@brendog wrote:

I stopped paying my business credit card in February because I thought it was separate from my personal credit (it was a corporation, which I thought separated me). Surprise! In April, Chase closed the account and then filed it under my personal credit as 60 day delinquent. Score dropped -100 points. I immediately brought the Chase account to good standing to avoid a 90 day. However, there is still a large balance. I have the money to pay it off, but not sure if that is wise, credit-wise. What should I do now to heal my credit score fastest? Pay it off 100% or pay it off on time a while?

---

Pay that sucker off.  They have now reported it to your personal credit. Your score will not heal fast.  You have really stepped in a big pile buddy.  How long do late pays take to fall off your report?  7 years and six months ?  And they do slowly stop hurting your score, but how long does that take?  Three years?  I dont recall exact numbers, someone else can chime in, or you can go ahead and check the forums yourself.  Sorry, you didnt know you probably signed a personal guarantee for that card like most of us did.