AMEX

[Gigi-DFW]

I have a very old CO account with AMEX. I've received letters from them with offers to settle for a lesser amount or a payment plan to pay in full but because I'm self-employed (and the money hasn't been there) I haven't been in a place to accept their offer(s). According to my Credit Karma account, both TU and Eq are reporting that the AMEX account was "removed from report" as the seven-year timetable to remove old debt has been met.

I would like to eventually pay the amount owed (approximately $2,500) and get back in with AMEX and I have a couple of quick questions:

1. Would paying the account off in the future put the account back on my credit reports? I would want to make one full payment and not pay over time as they've offered (both as a PIF and a lesser settlement amount).

2. If so, would the CO status be reinstated on my credit reports?

3. Are there any other pitfalls to paying off the account after the account has been deleted from my credit reports because of the seven-year rule?

4. My Vantage Score dropped by 3 points on both TU and Eq. How long will it take to regain those points plus gain additional points for the CO being removed from the bureaus?

5. Is it worth paying this account off in an attempt to "get back in" with AMEX or now that this account has been deleted, will they just let me back in (as CapOne did five years after I defaulted with them and long after they sold the account to a CA)?

TIA for your assistance!

[OmarGB9]

1. No, they can not legally add it back in. I don't think they would anyway. 

2. N/A

3. Nope. Account will be as if it never existed (however DEBT itself still exists).

4. No idea, as Vantagescores are very volatile. But I wouldn't worry about them as virtually no lenders use them anyway. I'm sure your FICOs went up.

5. Whether it's worth it or not is up to you. Is getting "back in" worth $2.5k to you?

And no, Amex will definitely NOT let you back in just because the debt fell off your reports. They'll still have their internal records and will hold a grudge for a LOOONG time (think decades). If you pay them back in full, they'll usually let you back in right away. 

[Gigi-DFW]

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@OmarGB9 wrote:

1. No, they can not legally add it back in. I don't think they would anyway. 

2. N/A

3. Nope. Account will be as if it never existed (however DEBT itself still exists).

4. No idea, as Vantagescores are very volatile. But I wouldn't worry about them as virtually no lenders use them anyway. I'm sure your FICOs went up.

5. Whether it's worth it or not is up to you. Is getting "back in" worth $2.5k to you?

And no, Amex will definitely NOT let you back in just because the debt fell off your reports. They'll still have their internal records and will hold a grudge for a LOOONG time (think decades). If you pay them back in full, they'll usually let you back in right away. 

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Thank you so much for your response and for answering my questions. I do want to eventually "get back in" with AMEX so I'll save up the money and pay them in full, hopefully in the not-too-distant future.  My main worry is that the debt/CO would reappear on my credit report(s) but you alleviated that concern with your response. 

[dize]

I'll 2nd what the previous poster said. I PIF'd them last year for about the same amount and got a gold card a couple of months later with a low to mid 600's score

[sjt]

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@Gigi-DFW wrote:

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@OmarGB9 wrote:

1. No, they can not legally add it back in. I don't think they would anyway. 

2. N/A

3. Nope. Account will be as if it never existed (however DEBT itself still exists).

4. No idea, as Vantagescores are very volatile. But I wouldn't worry about them as virtually no lenders use them anyway. I'm sure your FICOs went up.

5. Whether it's worth it or not is up to you. Is getting "back in" worth $2.5k to you?

And no, Amex will definitely NOT let you back in just because the debt fell off your reports. They'll still have their internal records and will hold a grudge for a LOOONG time (think decades). If you pay them back in full, they'll usually let you back in right away. 

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Thank you so much for your response and for answering my questions. I do want to eventually "get back in" with AMEX so I'll save up the money and pay them in full, hopefully in the not-too-distant future.  My main worry is that the debt/CO would reappear on my credit report(s) but you alleviated that concern with your response. 

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You can call them up and negociate a payment plan as an option.