+1 For the Discover card. It may be secured but you'd at least get it unsecured in seven months and would likely get a CLI that will equal the total CL you have now or more as well as get your deposit back if you make your payments on time. Add the 2% back along with the match by Discover, your $200 deposit looks more like an investment.
With key bank if I settle will they still report $0? Yes, though they might put in the notation that it was settled for less than full
Now my next question about the key bank derog is that it is pretty old. The date of first delinquency is 5 years ago so the account should be dropping off in a couple years. If I pay it will that countdown start all over again? No, the DOFD does not change - it could affect the statute of limitations, but not the reporting date to the CRAs
And if so am I better off leaving it be. I'm pretty positive this account is doing a lot of damage to my score because of its monthly reporting and because it's being counted into my overall utilization. It is absolutely damaging it; I would settle it if possible, but you have to choose whether waiting out the 2 years is worth the potential damage to your credit report (especially if you need to finance something).
I know someone said ignore the simulator but Experian claims if I pay it off my score will go up like 35 points. Either way it will be a positive so I suspect just paying it is best but I'm a little discouraged about the idea it will stick around for another 7 years if that is the case, what do u guys think?
If you pay it off, it should come off of your report in the 7 year from DOFD timeframe.
By paying it, they will stop updating your report and your scores can start to recover; if you don't pay it it will continue to update supressing your score more than necessary. There's also the fact that if you pay it/settle it, you won't have to worry so much about zombie debt buyers harassing you in the future.
Yup, you've pretty much got it.
It will continue to be a major score ding, but at least it will hurt less than it could.
My only concern (which I nearly hit) was that I while I was waiting for things to drop off, I had to take a loan out (1 year earlier than planned), and my derogs really tripped me up. I always want to caution people on waiting out such a long length of time after that