Should I pay off my charged off credit cards now?

Anonymous · ‎08-18-2007

Hi - need some help. I currently have outstanding revolving dept of $2400 - consisting of 2 charged off credit cards and 1 currently opend credit card. I have been told that my credit score will not change if I pay off the charged off accounts, in fact it actually may draw a red flag to my credit report, however, when I use the a the simulator model - it advised that I pay down this balance by 90-100% in order to raise my score.

I am not sure what to do. My gut feeling is to pay them all off now.

Thanks.

Anonymous · ‎08-18-2007

chercher wrote:
Hi - need some help. I currently have outstanding revolving dept of $2400 - consisting of 2 charged off credit cards and 1 currently opend credit card. I have been told that my credit score will not change if I pay off the charged off accounts, in fact it actually may draw a red flag to my credit report, however, when I use the a the simulator model - it advised that I pay down this balance by 90-100% in order to raise my score.

I am not sure what to do. My gut feeling is to pay them all off now.

Thanks.

when were they charged off? what ia CL and Bal on open CC? Who has CO, OC or CA

Message Edited by HappyDays on 08-18-2007 01:58 PM

Anonymous · ‎08-18-2007

I'll have to find the dates they were actually charged off. It doesn't say on the Equifax credit report I just got from "My Fico".? Anyway, here is who they are with:

Merrick bank - c/o in 2005 or 2006 $1050

HSBS sold my account to Portfolio within the last 2 years $1048

Capital One - current limit is $300 - balance is 0.

Any further help you could provide would be appreciated!

fused · ‎08-18-2007

chercher wrote:

I'll have to find the dates they were actually charged off. It doesn't say on the Equifax credit report I just got from "My Fico".? Anyway, here is who they are with:

Merrick bank - c/o in 2005 or 2006 $1050

HSBS sold my account to Portfolio within the last 2 years $1048

Capital One - current limit is $300 - balance is 0.

Any further help you could provide would be appreciated!

Hi there! I would begin with this thread. Great stuff.

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

Anonymous · ‎08-19-2007

Pay them off. As long as it is factoring in your overall revolving debt, paying them off will increase your score as it is reducing your revolving debt. Also, by paying them off, you prevent them from being sold to junk debt buyers and haunting you forever. Also, once the debt is paid off, they cannot sue you and you will have satisfied a personal obligation.

In a manual review for a loan, the lender will see that you made attempts to correct a bad situation and this could help in the long run.

Anonymous · ‎08-19-2007

chercher wrote:
I'll have to find the dates they were actually charged off. It doesn't say on the Equifax credit report I just got from "My Fico".? Anyway, here is who they are with:

Merrick bank - c/o in 2005 or 2006 $1050
HSBS sold my account to Portfolio within the last 2 years $1048
Capital One - current limit is $300 - balance is 0.

Any further help you could provide would be appreciated!

check your SOL.......I thing you have not past it

http://www.bankrate.com/brm/news/cc/20040116b2.asp?caret=8

Merrick Bank....You can PIF...it will stay on you CR as CO paid for 7 -7.5 yrs.

You can try & PFD....this is PIF and will be removed completly from CR

Protfoilo this you need to know when your SOL ( I would say before contecting them.) You go by the DOFD or DOFA from the OC

If past SOL you can offer PFD at maybe 40% under $1048...this works better after SOL has past.

If not past still try PFD

Leave Cap1 along & don't use it.

Read this thread

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=17466