@MichaelMyers,
Tell your sister if she can pay the minimum due from the initial month it became late it will stretch out the charge-off for another month. She should be able to keep doing this until she can get the funds. But she can’t be short by even a $1 or a day or it get CO’d. She’ll be on the edge of CO each month but if she’s making those minimums is should help to stretch it out for a bit. Tell her to make sure she’s getting the exact amount due off her statements.
I was in the same boat a few years ago and did what I’m advising and was able to stretch it out 3 mos til I was able to catch up.
Good luck
Tell your sister if she can pay the minimum due from the initial month it became late it will stretch out the charge-off for another month. She should be able to keep doing this until she can get the funds. But she can’t be short by even a $1 or a day or it get CO’d. She’ll be on the edge of CO each month but if she’s making those minimums is should help to stretch it out for a bit. Tell her to make sure she’s getting the exact amount due off her statements.
I was in the same boat a few years ago and did what I’m advising and was able to stretch it out 3 mos til I was able to catch up.
Good luck
@Anonymous wrote:
Most likely talking to the wrong department. Tell her to call and say she is interested in their Financial Hardship program. Many credit cars companies will close the account, freeze the balance from accruing interest and will split payments over 24-48 months.
A collection is worse than a charge off when it comes to credit. I still had ‘decent’ credit with a 3 year old charge off on my credit. When I got a collection it dropped it by 80 or so pts.
Please post accurate information fellow poster. A charged-off account that has a past-due balance is worse than a charged-off account that has been paid or settled. Meanwhile, the balance associated with a collection account is not considered in FICO's scoring models. That's why paying off a collection doesn't actually result in a higher credit score. There's no util considered in a collection unlike a CO account. Your CO was aged whereas your collection was fresh and it hit you hard for being new.
@Anonymous wrote:
@FireMedic1 wrote:
@Anonymous wrote:
Most likely talking to the wrong department. Tell her to call and say she is interested in their Financial Hardship program. Many credit cars companies will close the account, freeze the balance from accruing interest and will split payments over 24-48 months.
A collection is worse than a charge off when it comes to credit. I still had ‘decent’ credit with a 3 year old charge off on my credit. When I got a collection it dropped it by 80 or so pts.Please post accurate information fellow poster. A charged-off account that has a past-due balance is worse than a charged-off account that has been paid or settled. Meanwhile, the balance associated with a collection account is not considered in FICO's scoring models. That's why paying off a collection doesn't actually result in a higher credit score. There's no util considered in a collection unlike a CO account. Your CO was aged whereas your collection was fresh and it hit you hard for being new.
I'm encouraging the OP not to allow this to go to collections as it`ll do even further damage.
The account hasn't even made it to charge off yet. Nor any talk about collections. As Remmy said. Its already doing damage now. We try to give accurate information. If we dont know something. We can ping someone that will know. Your statement in red was not accurate. We dont want to lead new posters or any posters into a wrong direction/decision. Credit is a serious matter. I only pointed this out as a learning curve for your future posting on the forum. I can ping @Remedios and she can tell you how its done here. I'm not getting on you. You learned something new now that you didnt know before. Run with it and help others.