cancel
Showing results for 
Search instead for 
Did you mean: 

Charge Off Paid Or Wait

tag
Anonymous
Not applicable

Charge Off Paid Or Wait

I was recently denied for a private student loan with Discover Student Loan and also did not prequalify with College Ave.  I may have to sit out this year to build my credit with the intent of being approved by say January term since I do not have a cosigner.

 

The denial notice highlighted chargeoff on credit file and delinquent past or present credit obligations as reasons for decision.

 

All of my current accounts are in good standing.  I have a charge off with:

 

Dade County Federal Credit Union. last reported as CO $2396 in Mar 2016 (on record until 9/2022, per experian report)

 

South Florida Education (SFED) Credit Union first CO $430 reported Sep 2016 (on record until 1/2023, per experian report)

 

One Main Financial CO first reported 12/2015. Last reported CO in 2017 and listed as CLS (i do not see the "reported until" date listed for this account)

 

My questions are:  

I notice the SFED account,  has reported a CO of $430 every month since 2016.  Do these charge off accounts that report CO balances currently hurt more my score more than the other two CO accounts that have not reported anything since 2016/17?

 

I was advised to ask for a PFD but they would not.  Since I need to get my scores healthy enough to be approved for a loan without a cosigner, will paying the chargeoff for that acct that reports currently help me or hurt me in my goal? (My scores right now are roughly

ex 649, eq 676, tu 699)

I was also consdering paying it since discovers reason for loan denial included: chargeoff on credit file, delinquent past or present credit obligations. 

 

Lastly, Do chargeoffs definitely get sold to a Collection agency?  Im wondering if these fall off my credit, will i then have to worry about them reappearing from a collection agency.

 

 

Please help me come up with a plan.  I did not think I would still be denied credit due to CO from 2016.  Without a loan, seems like a dream deferred. 

 

Sincerely,

Held off by charge-offs

 

 

3 REPLIES 3
Anonymous
Not applicable

Re: Charge Off Paid Or Wait


@Anonymous wrote:

I was recently denied for a private student loan with Discover Student Loan and also did not prequalify with College Ave.  I may have to sit out this year to build my credit with the intent of being approved by say January term since I do not have a cosigner.

 

The denial notice highlighted chargeoff on credit file and delinquent past or present credit obligations as reasons for decision.

 

All of my current accounts are in good standing.  I have a charge off with:

 

Dade County Federal Credit Union. last reported as CO $2396 in Mar 2016 (on record until 9/2022, per experian report)

 

South Florida Education (SFED) Credit Union first CO $430 reported Sep 2016 (on record until 1/2023, per experian report)

 

One Main Financial CO first reported 12/2015. Last reported CO in 2017 and listed as CLS (i do not see the "reported until" date listed for this account)

 

My questions are:  

I notice the SFED account,  has reported a CO of $430 every month since 2016.  Do these charge off accounts that report CO balances currently hurt more my score more than the other two CO accounts that have not reported anything since 2016/17?

 

I was advised to ask for a PFD but they would not.  Since I need to get my scores healthy enough to be approved for a loan without a cosigner, will paying the chargeoff for that acct that reports currently help me or hurt me in my goal? (My scores right now are roughly

ex 649, eq 676, tu 699)

I was also consdering paying it since discovers reason for loan denial included: chargeoff on credit file, delinquent past or present credit obligations. 

 

Lastly, Do chargeoffs definitely get sold to a Collection agency?  Im wondering if these fall off my credit, will i then have to worry about them reappearing from a collection agency.

 

 

Please help me come up with a plan.  I did not think I would still be denied credit due to CO from 2016.  Without a loan, seems like a dream deferred. 

 

Sincerely,

Held off by charge-offs

 

 


I am still denied credit from baddies days away from 7 years old.

 

Collection accounts are way worse than charge offs for several reasons. They put you in a public record scorecard with a lower possible high score ceiling, and look really bad. If these charge offs come off or continue to stay, they can add a collection account (if they enlist one for assistance in collecting or sell the debt), it is a double whammy on your credit - two bad accounts for the price of one - at any time up until 7 years (or potentially 7 years 180d, max, but generally 7 years).

 

For examole, I have no charge offs on my credit and no lates, and scores in the low 700s, but have 3 x CAs almost 7 years old and almost always denied for credit.

 

On the other hand, my SO has 1 x unpaid CO that is 5+ years old and updates every month (and when apping, he had 2 x COs, 1 has since aged off), with a few lates on it and no collection accounts, and only slightly lower scores than me, and has been approved for any type of credit he has applied for, so far.

 

Not to say he is bullet-proof, but the proof is in the details, collections are the worst, along with other public records like bk, fc, repo, and any baddies can and will be held against you until they come off your credit reports completely. It is risk and they weight risk and your past behavior when deciding to extend credit.

 

COs that are sleeping quietly are best left that way, when sleeping, your scores can recover. If they update (due to payment or dispute), they could tank your scores (specifically disputing will for sure, paying may help, hurt, or make no difference). The one uodating regularly would be best if paid, so it can stop updating regularly and your scores can recover.

 

Message 2 of 4
Anonymous
Not applicable

Re: Charge Off Paid Or Wait

Thanks for your reply and personal experience.

 

As it stands I have no Collection Accounts.  Only the three Charge offs.  Considering your SO's profile sounds simliar to mine (2 very old CO's set to drop next year and does not report) and he typically gets approved, I wonder if infact the charge off that is being reported monthly is the one most keeping me from approval.  

 

And just for clarity, are you saying that chargeoffs (once fallen off due to life expiration) can reappear as a collection account.  Or are you saying that the chargeoff can be sold to a collection agency  and then be reported by both the original debtor AND the collection agency?

oof.  That's painful.

 

Lastly, am I to understand that engaging the waiting game (7 year life span) runs the risk of not falling off but rather becoming a collection account.

 

Thank you for the gem that CA's are worse than CO's

Message 3 of 4
Anonymous
Not applicable

Re: Charge Off Paid Or Wait


@Anonymous wrote:

Thanks for your reply and personal experience.

 

As it stands I have no Collection Accounts.  Only the three Charge offs.  Considering your SO's profile sounds simliar to mine (2 very old CO's set to drop next year and does not report) and he typically gets approved, I wonder if infact the charge off that is being reported monthly is the one most keeping me from approval.  

 

And just for clarity, are you saying that chargeoffs (once fallen off due to life expiration) can reappear as a collection account.  Or are you saying that the chargeoff can be sold to a collection agency  and then be reported by both the original debtor AND the collection agency?

oof.  That's painful.

 

Lastly, am I to understand that engaging the waiting game (7 year life span) runs the risk of not falling off but rather becoming a collection account.

 

Thank you for the gem that CA's are worse than CO's


I will say the one thing going for my SO is low to no inquiries and very long AAoA (17y) and AoOA (8y6m). He has a very short list of credit accounts aside from SLs. He just got his first credit card last year and now has 3 revolvers. Not sure if any of that mattered, but it looked like some were willing to take the chance on him this far. He scores are in my siggy.

 

The CAs can happen at any time, even after the reporting period ends. Reporting period ending geberally does not mean you no longer owe the debt (check your state's laws), but after the 7y 180d reporting period is up, they can no longer report. And ues, bith can be on your report during the reporting period, if the enlist the services of a CA to help collect or sell the debt altogether. Even if they sell the debt to a CA, that does not mean the CO account gets removed. The CA may or may not report to the 3Bs and it can be very painful to be hit twice for the same debt.

 

When my last CO came off, I gained 70+ pts across the board (but still have 3x CAs). When my SO's last CA came off he gained 40+pts accross the board (but still had 2 x COs). My point is, funny enough that our scores are basically identical, he can obtain credit while I cannot.

 

Both me and my SO mostly played the waiting game since we really decided to take our credit seriously towards the end of the 7 year window. It made most sense to us. We have paid a few debts that were outside the age off range of the bulk of them. I may circle back one by one to pay them because they are my debts, but for prioritizing my efforts ($$$), it made most sense for me to work it the way I did.

Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.