Which account status is better...

Anonymous · ‎07-21-2008

Closed by creditor or Charge off/bad debt? Is there any difference with regard to the score. I want to send a settlement offer to BofA after their rejection of my PFD. Generally, i want to know if there is any benefit to my score to get the status changed to closed by creditor in exchange for full payment.

Anonymous · ‎07-21-2008

A chargeoff is a major derog.

Closed by credit grantor is 'only' seen by a manual review. If the account is PIF and closed by credit grantor with no lates, it's a good account for scoring purposes.

Anonymous · ‎07-21-2008

@Anonymous wrote:
A chargeoff is a major derog.

Closed by credit grantor is 'only' seen by a manual review. If the account is PIF and closed by credit grantor with no lates, it's a good account for scoring purposes.

Agree completely. A charge off will tank your score substantially. Closed by grantor has no negative effect, except in the case of a manual review as gordon stated.

fused · ‎07-21-2008

datgirlb wrote:

Closed by creditor or Charge off/bad debt? Is there any difference with regard to the score. I want to send a settlement offer to BofA after their rejection of my PFD. Generally, i want to know if there is any benefit to my score to get the status changed to closed by creditor in exchange for full payment.

I agree with what the others said so far, but let me add something. Make sure you do PIF. If not, BoA might report the account as settled for less and this tanks FICO scores just as much as a CO.

Anonymous · ‎07-21-2008

@fused wrote:

@Anonymous wrote:

Closed by creditor or Charge off/bad debt? Is there any difference with regard to the score. I want to send a settlement offer to BofA after their rejection of my PFD. Generally, i want to know if there is any benefit to my score to get the status changed to closed by creditor in exchange for full payment.

I agree with what the others said so far, but let me add something. Make sure you do PIF. If not, BoA might report the account as settled for less and this tanks FICO scores just as much as a CO.

Good info. Is this another account state like a CO? Or is it just a notation in the comments.

fused · ‎07-21-2008

@Anonymous wrote:

@fused wrote:

@Anonymous wrote:

Closed by creditor or Charge off/bad debt? Is there any difference with regard to the score. I want to send a settlement offer to BofA after their rejection of my PFD. Generally, i want to know if there is any benefit to my score to get the status changed to closed by creditor in exchange for full payment.

I agree with what the others said so far, but let me add something. Make sure you do PIF. If not, BoA might report the account as settled for less and this tanks FICO scores just as much as a CO.

Good info. Is this another account state like a CO? Or is it just a notation in the comments.

Anything in the status line that doesn't say paid, paid as agreed or paying as agreed will cause the FICO gods to score the account as a derog TL. Just like a charge-off in the status does.