5 Charge Off's

[fabrownii]

When I was 18 I did the stupid thing and signed up for all the credit card offers in the mail. I started trying to rebuild my credit in December 2014 and just signed up this month for MyFico instead of FAKO scores. I confirmed 5 charge offs.

Capital One CC Charge Off reporting a ZERO balance last activity 10/2011..credit limit $750

Capital One CC Charge Off reporting a ZERO balance last activity 10/2011..credit limit $500

Chase CC Charge Off reporting a $794 balance last activity 10/2011

Bank of America Charge Off reporting a balance of $1411 last activity 10/2011

Florida Credit Union Line of Credit Charge Off reporting a $49 balance last activity 01/2012

As you can see there was a change in income in 10/2011 and therefore I stopped paying all my credit cards. I never cared about my credit until recently when I realized how bad it is and the interest rates I am getting on vehicles.

The SOL in FL is 5 years so I am 16 months out on most of these. Should I wait the 16 months and send PFD's for less than owed or should I settle these ASAP. I have been offered settlement of less than 50% on 4 of these which I can afford but I cannot afford to PIF right now. All 5 are currently reporting on these to the BIG 3 as well. My question is, What option will get my credit up fastest?

Thanks, FB

[damnedanddetermined]

I would take the 50% settlement and ask for PFD....most want it PFD for full deletion....FYI~ regardless of how you pay Cap One...slim chance of deletion, very slim!!

[fabrownii]

Thank you. My only worry about settling is if they do not delete it the 7 years restarts. 

[gdale6]

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@fabrownii wrote:

Thank you. My only worry about settling is if they do not delete it the 7 years restarts. 

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The DoFD set by the OC starts the clock ticking as to when it can be removed from your CR. Its a max of 7.5 yrs from this point. It cannot be changed it is set in stone anyone trying to change it would be committing an illegal act. Settling the COs and stopping the monthly updating will help you in the long run as they can begin to age in the eyes of Fico. When they update monthly it keeps your Fico depressed. You can try to include a deletion of the TL on those offers but they may not be willing unless they are PIF and even then its hard to get a PFD from an OC unless its near dropping off your CR. Take a look at the PFD threads and get some ideas on how to counter or write your own proposal

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/...

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

[fabrownii]

Thanks for the responses. I need to get with the CRA and see when the DoFD is and see if its much different from my DoLA

[bodybuilder510]

Settle or pay in full. Are any of the 5 sold/transfered? If the orginal creditors still hold the account, just settle or pay in full all accounts to report 0 and stop monthly updating. If accounts have been sold to collection agency then your negotiating for them to delete or not to report after payment. Once all charge offs are taken care of. There will be light for you down the road. Couple if secured cards will do just fine. Credit union preferred. US bank gave me a shot when I was down.

[knsimpkins87]

Im on my finances account. For some odd reason my account (fabrownii) has been locked. I just had to send MyFico an email. 

To answer your question, 2 have been sold. Both Capital One's and both to Portfolio Recovery. I sent in debt validation letters in Feb to PR for both accounts and got letters back a week letter stating after our investigation your accounts have been closed and deleted from the 3 CRA's. PR is no longer showing on my CR but CapOne still is and it says its a charge off with a zero balance. I have been going back and fourth with CapOne about verifying the deby for 23 months. Fnally about 1 week ago I sent in letters to the 3 CRA's telling them what is going on and attached all my supporting documents. Waiting to hear back. I have a feeling CapOne is beating around the bush because they dont have any way to verify the debt. The other 3 are with the OC.