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Bouncing back from severe delinquency? Please help with any ideas

sjt
Senior Contributor

Re: Bouncing back from severe delinquency? Please help with any ideas


@concord wrote:

UPDATE: Chase agreed to settle directly! $8k lump sum to settle $31k debt. They read me terms that include:

 

-I'm going to get a 1099-C for both accounts sent to the IRS

-both will stay as a charge offs on credit report

-I may be declined from future Chase products due to settling for less than full balance

-If I don't pay by due date, settlement offer will go up, and debt may be sent to collections agency

 

They also said they usually report the accounts as settled to the credit bureaus within 2 billing cycles (60 days). 

 

Question 1: I'm pretty sure these are the best (and only) terms I would be offered. Has anyone had success getting better terms (in terms of clearing credit report with less than full settlement with Chase)? 

 

I didn't pay over the phone, I said I needed a settlement letter in the mail. They are sending one, it could take 7-10 business days

 

I am extremely hesistant to pay these settlements off over the phone. Is this a legitimate concern? I'm worried I will pay the $8k and because I don't have written proof of the settlement, it could cause future issues. 

 

Question 2: Once I receive the settlement offer do you think it's okay to call Chase and pay over the phone? Or I should definitely mail a check to be safe? They said I could also pay at a Chase branch, and I would get a receipt. 


The settlement amount is good and yes you can pay over the phone. Just make sure they send or email you a payment confirmation, as well as a confirmation number once you give them your info.

 

 

American Express: Platinum Charge, Optima, Business Gold, Delta Business Platinum
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture VS
Chase: Freedom U VS, CSR VI
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity VS
Credit Union: Rewards Visa
FICO 08: (2.20.21) EX: 838 / EQ: 846 / TU: 843
Message 31 of 47
concord
Established Member

Re: Bouncing back from severe delinquency? Please help with any ideas

RE: sjt

 

"It really does not matter how they reports it to the credit bureaus as long as it shows a zero balance and either settled or paid. If you settled for less then owed, it will be notated in the memo section, which doesn't have an effect on your score."

 

Just reading your comment above. That's great to know! I don't know how much settling these debts is going to boost my credit score but this is very encouraging. Definitely getting a zero balance and "settled." Which it sounds like is all that matters. 

 

The settlement amount is good and yes you can pay over the phone. Just make sure they send or email you a payment confirmation, as well as a confirmation number once you give them your info.

 

Awesome, this really helps. Much easier to get it all done at once (over phone). Thank you for your continued replies, I really appreciate your feedback sjt. 

Message 32 of 47
sjt
Senior Contributor

Re: Bouncing back from severe delinquency? Please help with any ideas

Thanks!

 

Good luck and keep us posted.

American Express: Platinum Charge, Optima, Business Gold, Delta Business Platinum
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture VS
Chase: Freedom U VS, CSR VI
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity VS
Credit Union: Rewards Visa
FICO 08: (2.20.21) EX: 838 / EQ: 846 / TU: 843
Message 33 of 47
ImTheDevil
Community Leader
Senior Contributor

Re: Bouncing back from severe delinquency? Please help with any ideas

OP, regarding your score change, just be aware that once they update to paid, you may see an increase but it likely won’t be dramatic since the collection tradeline will still be there. You’ll realize more gains over time though, because once paid, the collection is no longer updated and it begins to age. The continual monthly updating keeps a collection fresh on your scores and holds them down. With it aging, your scores will start to rise.


Platinum NPSL | Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | FNBO Prime Visa | PenFed PCR | Navy Platinum | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | Key Bank auto loan (2017 Audi A6 Premium Plus S-Line)





TCL $112,400 | Agg. Util under 10%
Message 34 of 47
concord
Established Member

Re: Bouncing back from severe delinquency? Please help with any ideas

UPDATE:

 

1. Today, I got the settlement letters from Chase, and paid both accounts off. $31k in debt settled! 

 

2. I also heard from Citibank, they said my balance is now $0! Will follow up with Capital One for other account I paid to confirm balance is now $0 in a few weeks. 

 

3. I sent details of all the settlements to my accountant as well as a copy of my latest paystub so she can see what my tax burden is going to be. When I spoke to her on the phone, she roughly estimated it at $3500

 

WHAT'S NEXT:

 

-I've exhausted my savings paying off this debt. Going to start saving for that $3500 tax bill (and hopefully a down payment to rent an apartment in Brooklyn, NY.. if I can get anyone to approve me.. with all these former delinquencies). Any advice here would be much appreciated! Smiley Happy

 

-Going to settle my last outstanding debt - the Paypal Loan ($1390) - still not showing on my credit report. Hopefully the collections agency contacts me again before it shows up on my credit report.

 

-Going to download Experian CreditWorks app, and pay the $25 a month to track my credit. I'm thinking it's probably not worth it until 60 days from now because that's when these debts should report as paid. And.. ImTheDevil made a salient point - there's probably not going to be all the much improvement. Bummer. 

Message 35 of 47
Creditaddict
Legendary Contributor

Re: Bouncing back from severe delinquency? Please help with any ideas

Sign up for Experian and then call to cancel... you can get it for half and that's worth it Smiley Happy

Message 36 of 47
concord
Established Member

Re: Bouncing back from severe delinquency? Please help with any ideas

RE: Creditaddict

 

Thank you so much for this tip -- half price sounds great to me! 

Message 37 of 47
sjt
Senior Contributor

Re: Bouncing back from severe delinquency? Please help with any ideas


@concord wrote:

UPDATE:

 

1. Today, I got the settlement letters from Chase, and paid both accounts off. $31k in debt settled! 

 

2. I also heard from Citibank, they said my balance is now $0! Will follow up with Capital One for other account I paid to confirm balance is now $0 in a few weeks. 

 

3. I sent details of all the settlements to my accountant as well as a copy of my latest paystub so she can see what my tax burden is going to be. When I spoke to her on the phone, she roughly estimated it at $3500

 

WHAT'S NEXT:

 

-I've exhausted my savings paying off this debt. Going to start saving for that $3500 tax bill (and hopefully a down payment to rent an apartment in Brooklyn, NY.. if I can get anyone to approve me.. with all these former delinquencies). Any advice here would be much appreciated! Smiley Happy

 

-Going to settle my last outstanding debt - the Paypal Loan ($1390) - still not showing on my credit report. Hopefully the collections agency contacts me again before it shows up on my credit report.

 

-Going to download Experian CreditWorks app, and pay the $25 a month to track my credit. I'm thinking it's probably not worth it until 60 days from now because that's when these debts should report as paid. And.. ImTheDevil made a salient point - there's probably not going to be all the much improvement. Bummer. 


Congratulations!

 

You made a HUGE step in taking control of your finances!

 

Couple of things:

  • I think you will get a decent bump in your FICO score once Chase and Citi update. You are also lucky to live in NY state because its only 5 years as oppose to two.
  • Make sure your accountant knows to count all of your debt prior to settement. That is the total balance owed (ie Chase $31K etc). Also make sure to include all debt/liabilities like money owed to family and friends, taxes, medical bills, rent, etc. 
  • When you start looking for apartments. Have a statement ready that explains your credit report. Emphasize the payments/payoff of those debts. Get letters of recommendations.

 

Keep us posted.

 

American Express: Platinum Charge, Optima, Business Gold, Delta Business Platinum
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture VS
Chase: Freedom U VS, CSR VI
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity VS
Credit Union: Rewards Visa
FICO 08: (2.20.21) EX: 838 / EQ: 846 / TU: 843
Message 38 of 47
MaizeandBlue
Senior Contributor

Re: Bouncing back from severe delinquency? Please help with any ideas

Even better than half-price, which I don't even think they offer anymore, is to sign up for the $4.99 30-day trial subscription.  Then on the 30th day, cancel the subscription online.  The next day when you log in you will see a banner message saying you're eligible for another trial and you can sign up for $4.99 again.

I've heard that some people sign up and cancel so often that the system develops a glitch and they are able to continue for free indefinitely.

https://ficoforums.myfico.com/t5/General-Credit-Topics/Free-Experian-Monitoring-Suite-for-Months/td-...





Message 39 of 47
phillip1
Contributor

Re: Bouncing back from severe delinquency? Please help with any ideas

MaizeandBlue,

 

I saw your reply about repeatedly using the 30 day trial. I have been using that for a while too.

 

I also noticed your dramatic rise in your FICO scores in just a bit more than a year and am VERY impressed.

 

Can you give me some of your tips -- what allowed you to rise so quickly in such a short time.

 

Thanks.

Message 40 of 47
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