cancel
Showing results for 
Search instead for 
Did you mean: 

Charge off and new credit question?

pattie0516
Member

Charge off and new credit question?

I have been a lurker on and off and now am in a position to take charge of my credit. 

 

3 years ago I was put on bed rest very early into my pregnancy which resulted into the birth of a 28 week miracle boy and subsequently me exhausting my FMLA and losing my jobs. I held on to paying everything as long as I could but eventually it resulted in an embarrassing number of charge offs. 

 

My question is I am now in the position to pay in full or settle. Luckily most of mine are with company's that will PFD. When it comes to rebuilding though what are the chances that I'll ever be able to reobtain credit if I've had charge offs with so many companies.  Capital One, Chase, NFCU ( which I'll be pif for sure) AMEX, Discover, my most favorite Costco Visa ... will any of them ever allow me to make amends. And if so looking down the road does it make a difference if I PIF or settle.  

 

Sorry for the long post and I'm looking forward to learning from so many of you.  

Message 1 of 7
6 REPLIES 6
Brian_Earl_Spilner
Community Leader
Mega Contributor

Re: Charge off and new credit question?

It really depends on how severely you burned them. Cap1 and disco should forgive you pretty quickly. The others, not so much. You'll be able to get back in with them much sooner if you PIF. In the case of Chase and amex, you can settle, but the failure to pif will be a huge pain point when they let you back in.







Message 2 of 7
Rebuild2022
Super Contributor

Re: Charge off and new credit question?

I dont know about other cards. But for Amex if you pay it in full they will give you an Amex Optima Card normally about 50% of the amount you paid off on your account. After having Optima for 12 months you can apply for regular cards. With Amex it is very clean method to get back into family using Optima Route. Ask the CSR or Collection agency for the details on Optima Card.

 

Hope the baby or babies are doing well. My DW was in hospital bed rest for several weeks when we had my twin daugthers. It was almost like yesterday but 21 years ago. Wish you all the best. 

Gardening since 08/2020
Message 3 of 7
TheKid2
Frequent Contributor

Re: Charge off and new credit question?

If they ended up going to collections, you most certainly could PFD (even settle for delete). However, the OC accounts will not be deleted and will still bear a CO status on your reports until 7 years from the Date Of First Deliq. As stated above, you should consider PIF even without a delete to help "get back in" with the creditors.

 

The key is getting all your past due balances to $0. Whether you do that via PIF or settling is mostly a personal choice as there are many factors to consider.

 

Message 4 of 7
Rebuild2022
Super Contributor

Re: Charge off and new credit question?

I agree with @TheKid2 comments. What does your credit report show now? If it happed 3 years ago most likely some of them went to collections. You might want to take a look at the credit report and see if there are any outside collections reported. Some times lenders hold the accounts in house and hire a collection agency. Check the report and let us know.

 

1. If they report balance then the lender owns it.

2. If they are showing $0 balance then might have sold it. The company who bought the debt might or might not report. (YMMV)

It is better to know more details from your report.

 

Gardening since 08/2020
Message 5 of 7
pattie0516
Member

Re: Charge off and new credit question?

That is where I am having some trouble. I have every report program out there and it doesnt seem everything is reporting. And the worst part is I dont even remember everything 100%. This is going to take a spreadsheet and some serious homework. 

 

  • AMEX it appears is still owned by AMEX so I can call them and speak with them directly and see about their program.
  • NFCU I know is owned by them and that they are a definite one I want to be in good graces with. I also had 2 accounts one line of credit and one credit card and only one is reporting.
  • Chase I dont see anywhere on any reports. Neither the closed account or a collection account
  • HSBC, Barclay, Citi, and Cap One are reporting closed and showing collection accounts with Portfolio, Midland, Cavalry, and one with LVNV. I have read all good things about pay for delete with them (except maybe LVNV). My only question there is if I settle and have it deleted does it hurt my chances at reopening accts in the future with the original creditor or since it is sold/charged off/paid/deleted there is no connection anymore?

I do know that even with paying everything off it is going to be a long road of rebuilding credit. As much as I wish it was as easy as clicking a button, I know that isnt how this works. I am lucky enough to own my car and home so have those reporting positively, albeit with 1 or 2 30 day lates (goodwill letters will be my next crossroads). I also have a couple of store cards that are still open and current. I am just looking forward to making this step forward and stopping the collection letters and calls from coming in. 

 

 

Message 6 of 7
Rebuild2022
Super Contributor

Re: Charge off and new credit question?


@pattie0516 wrote:

That is where I am having some trouble. I have every report program out there and it doesnt seem everything is reporting. And the worst part is I dont even remember everything 100%. This is going to take a spreadsheet and some serious homework. 

Yes, it will take some time and lot of hard work in compiling all the details. Start a worksheet with the details you want.

 

1. Check with the Statue of Limitations in your state. Most states are 3 years. Once the SOL is passed they can not sue you. It is good to know before you poke the bear.

 

2. Amex never sells their debt. Call them and offer to make the payment in full and they will give you Optima card. In case you can not pay all at once Amex will give you payment option of 12/24/36 months with no interest. Amex is one of the easiest to deal with in my opinion. Pay it full or make payment plan for the full amount and get an Optima card and move on.

 

3. There is a PFD thread in the forum. Search for it. It will give you an idea about which Collection companies do PFD either settle in full or partial settlement.  I know PRA is pretty good in deleting. Midland the account has to be 2 years old before they delete it. Check on Midland website. Othe CAs I am not sure. Search for that thread I referred earlier.

 

4. NFCU and other companies might settle for 10% - 20% of the debt. Other companies start with 10% of the debt and could go upto 40%. YMMV. You can also setup an installment plan with these companies. Be cautious once you pay them some thing SOL clock resets and they will have more control on the debt and your obligation with them.

 

I really do not know about how these companies will allow to get back into their good graces and how long you have to wait before you can get back in. I know Amex is pretty good. I have no personal experience with NFCU but they might be good. Talk to them. Before you do any thing check your state SOL.  All the best.

Gardening since 08/2020
Message 7 of 7
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.