AMEX Optima Oasis

[Anonymous]

Update:
- Balance paid on Jun 29 (first day of billing cycle)
- Credit report updated to paid charge off, 0 balance on July 29
- Offer letter received 8/1 and app put in mail on 8/2
- Card app was approved on 8/6 (confirmed by checking Amex application status site - no communication received)
- Card arrived in the mail 8/17
- NO HARD INQUIRY. Since my AMEX login was still active even though my old accounts were closed, I was able to sign up for the MyFICO credit monitoring. There was a disclaimer in the terms stating AMEX would continuously monitor your credit profile. I suppose because of the monitoring, an additional hard pull was unnecessary.
- Card is pretty (same as image on pg 1 of this thread) and is more than the basic, no thrills card since there are plenty of deals you can sign up for through the Amex app. 👍🏼
- The only thing I’m waiting on now is the new tradeline, which I expect to will report at the end of this billing cycle - 9/6?

[Anonymous]

Congrats on paying your debt and scoring a new card!

[Anonymous]

Hello,  

I want to Thank you, for sharing with us your experience getting back into good grace with AMEX. I am in the process of doing the same.

I'm really unsure of the impact paying this charge off will have on my credit.

I just would like you to expand on how American Express handled your old (charge off ) accounts.

-Did they classify it as (Paid as Agreed) and boost your credit score while resetting the clock another 7-7.5 years?

-Did they classify it as (Paid as Agreed) and boost your credit score without resetting the clock another 7-7.5 years?

-Did they classify it as (Paid Collection) and reset the clock another 7-7.5 years?

-Did they classify it as (Paid Collection) without resetting the clock another 7-7.5 years?

I am in the process of clearing up all old debts and this will have a significant impact on how I approach this account. I want to thank you in advance for your feedback. 

[sjt]

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@Anonymous wrote:

Hello,  

I want to Thank you, for sharing with us your experience getting back into good grace with AMEX. I am in the process of doing the same.

I'm really unsure of the impact paying this charge off will have on my credit.

I just would like you to expand on how American Express handled your old (charge off ) accounts.

-Did they classify it as (Paid as Agreed) and boost your credit score while resetting the clock another 7-7.5 years?

-Did they classify it as (Paid as Agreed) and boost your credit score without resetting the clock another 7-7.5 years?

-Did they classify it as (Paid Collection) and reset the clock another 7-7.5 years?

-Did they classify it as (Paid Collection) without resetting the clock another 7-7.5 years?

I am in the process of clearing up all old debts and this will have a significant impact on how I approach this account. I want to thank you in advance for your feedback. 

---

Paying off the debt does NOT reset the clock for deletion. It will always be deleted from the date of first delinquency that lead to the eventual charge off.

[Anonymous]

For me, it tanked my score by 50 points. (720 to 670). They changed the tradeline from “charge off” with a balance owed to “paid, previously a charge off” with a zero balance. The balance I paid was removed from my total debt but didn’t improve my utilization score because it was already low. I suppose the brand new “paid, previously a charge off” update was way more negative than the 5 year old charge off status. My new Amex tradeline hasn’t appeared on my reports yet, but I assume it will have little impact or may pull my score lower by reducing average age of accounts.

However, paying it was the right thing to do. The negative tradeline will (hopefully?) still fall off the report in 2 years. I have my fingers crossed that “paid, previously a charge off” update from 2018 doesn’t stay put for another 7 years. If it does, I should be able to safely dispute that with the CR.

[Brian_Earl_Spilner]

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@sjt wrote:

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@Anonymous wrote:

Hello,  

I want to Thank you, for sharing with us your experience getting back into good grace with AMEX. I am in the process of doing the same.

I'm really unsure of the impact paying this charge off will have on my credit.

I just would like you to expand on how American Express handled your old (charge off ) accounts.

-Did they classify it as (Paid as Agreed) and boost your credit score while resetting the clock another 7-7.5 years?

-Did they classify it as (Paid as Agreed) and boost your credit score without resetting the clock another 7-7.5 years?

-Did they classify it as (Paid Collection) and reset the clock another 7-7.5 years?

-Did they classify it as (Paid Collection) without resetting the clock another 7-7.5 years?

I am in the process of clearing up all old debts and this will have a significant impact on how I approach this account. I want to thank you in advance for your feedback. 

---

Paying off the debt does NOT reset the clock for deletion. It will always be deleted from the date of first delinquency that lead to the eventual charge off.

---

7 years + 6 mos after first delinquency to be clear. You can request early exclusion from the bureaus when 6 mos are left.

[sjt]

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@Brian_Earl_Spilner wrote:

---

@sjt wrote:

---

@Anonymous wrote:

Hello,  

I want to Thank you, for sharing with us your experience getting back into good grace with AMEX. I am in the process of doing the same.

I'm really unsure of the impact paying this charge off will have on my credit.

I just would like you to expand on how American Express handled your old (charge off ) accounts.

-Did they classify it as (Paid as Agreed) and boost your credit score while resetting the clock another 7-7.5 years?

-Did they classify it as (Paid as Agreed) and boost your credit score without resetting the clock another 7-7.5 years?

-Did they classify it as (Paid Collection) and reset the clock another 7-7.5 years?

-Did they classify it as (Paid Collection) without resetting the clock another 7-7.5 years?

I am in the process of clearing up all old debts and this will have a significant impact on how I approach this account. I want to thank you in advance for your feedback. 

---

Paying off the debt does NOT reset the clock for deletion. It will always be deleted from the date of first delinquency that lead to the eventual charge off.

---

7 years + 6 mos after first delinquency to be clear. You can request early exclusion from the bureaus when 6 mos are left.

---

You are correct that the FCRA states 7 years plus 180 days. However, all the major credit bureaus delete within 7 years. On top of that you can request early deletion. My experiance is that EX will delete 3 months preior to the 7 year mark, TU will delete 6 months prior to the 7 year mark, and EQ will delete 1 month prior to the 7 year mark.

[sjt]

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@Anonymous wrote:
For me, it tanked my score by 50 points. (720 to 670). They changed the tradeline from “charge off” with a balance owed to “paid, previously a charge off” with a zero balance. The balance I paid was removed from my total debt but didn’t improve my utilization score because it was already low. I suppose the brand new “paid, previously a charge off” update was way more negative than the 5 year old charge off status. My new Amex tradeline hasn’t appeared on my reports yet, but I assume it will have little impact or may pull my score lower by reducing average age of accounts.

However, paying it was the right thing to do. The negative tradeline will (hopefully?) still fall off the report in 2 years. I have my fingers crossed that “paid, previously a charge off” update from 2018 doesn’t stay put for another 7 years. If it does, I should be able to safely dispute that with the CR.

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Thats odd, you should have received a bump in score for paying off the charge off, especially since Amex reports the unpaid charge off monthly. Something else must of happened at the time you paid off Amex. Which score was it FICO or Vantage?

[Anonymous]

Vantage for sure - I haven’t checked my FICO recently. Also, I’m fairly positive that this tradeline wasn’t reported every month.

[Anonymous]

Also, I get daily score updates, so any time there’s a change I’m notified immediately with an adjusted score. There were two changes that day - the paid charge off and another payment bringing a credit card balance lower than before. You’d think they’d both net a positive. Nope!