Charge off

[Anonymous]

Jan 2019 I received a charge off/ account close from a chase bank credit card with a $2k balance. It officially showed up on my account in July 2019. I don't want to pay it now since it is now in collections in fear it will remain on my credit report and I will just be out $2k... my question is if a family member adds me as an authorized user to their card with the same bank is there any possibility my existing debt be added to my family member's account? 

Any and all advice is appreciated!!

Currently I only have one other card which is 5 years old with $1000 limit and a 7 year mortgage which is current. Needing to buy a new house within 9 months. 

[Remedios]

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@Anonymous wrote:

Jan 2019 I received a charge off/ account close from a chase bank credit card with a $2k balance. It officially showed up on my account in July 2019. I don't want to pay it now since it is now in collections in fear it will remain on my credit report and I will just be out $2k... my question is if a family member adds me as an authorized user to their card with the same bank is there any possibility my existing debt be added to my family member's account? 

Any and all advice is appreciated!!

Currently I only have one other card which is 5 years old with $1000 limit and a 7 year mortgage which is current. Needing to buy a new house within 9 months. 

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Hi and welcome to the forums 

o, it wont be added to family members account, but they might decline having you as AU. 

Also, I'm not sure how Chase would react to that attempt, and if your family member's card would remain open.

Your CO is new, and if you're added to another account, Chase may "feel" that this account will also end up as a CO, guilty by association. 

You should probably see if you can be added to the card with a different lender.

CO will remain on your report for 7 years, and if its updating, it will keep your score suppressed entire time.

The best thing you can do for yourself is to pay/settle any outstanding negatives you have, if you are looking forward to improving your credit.

Good luck! 

[Anonymous]

With my age of credit sitting right at 6 years I'm unsure what is the best quick fix... opening more cards would knock that down but also only having two revolving accounts is also not getting me anywhere fast either. Which have you seen make the bigger difference?

[rckstrscott]

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@Anonymous wrote:

With my age of credit sitting right at 6 years I'm unsure what is the best quick fix... opening more cards would knock that down but also only having two revolving accounts is also not getting me anywhere fast either. Which have you seen make the bigger difference?

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None of this matters while you have an unpaid charge off. There is no quick fix. Additionally, Chase can (and have) sued consumers, leading to more pain when THREE negative entries (the CO, the collection account that comes later and the judgement public record listing) hit.

The best approach is to settle this now before it gets worse, in my opinion.

Who is the collection account with? Perhaps they will do a PFD? Then you can settle the debt, get the collection removed and then work on getting the charge off remove.

-scott

[Anonymous]

When the collections company called I asked them if I paid them the settlement amount how would they be reporting it to the credit Bureaus, they told me that they report back to chase bank and then chase decides how to report. Once the charge off reported July 2019 my TU score went down to 582 and has risen back to 676. Experian 607 to 653. I want to do whatever i can to maintain that. I have read that any activity on a closed charge off will just reset all the time that has already past. But like you mentioned I am fearful a new collections account will pop on my report any day now and that would be devastating! 

[rckstrscott]

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@Anonymous wrote:

When the collections company called I asked them if I paid them the settlement amount how would they be reporting it to the credit Bureaus, they told me that they report back to chase bank and then chase decides how to report. Once the charge off reported July 2019 my TU score went down to 582 and has risen back to 676. Experian 607 to 653. I want to do whatever i can to maintain that. I have read that any activity on a closed charge off will just reset all the time that has already past. But like you mentioned I am fearful a new collections account will pop on my report any day now and that would be devastating! 

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What company did you speak with? Most (not all) will not report if you start payments before they report. 

Sounds like Chase still owns the account? Is there a balance on the charge off listed on your credit report?

-scott

[Anonymous]

I believe it was nationwide credit? 
the chase card shows last reported July 2019 shows closed with balance at $2k payment status: collection/charge off remarks: chargeoff account 

[rckstrscott]

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@Anonymous wrote:

I believe it was nationwide credit? 
the chase card shows last reported July 2019 shows closed with balance at $2k payment status: collection/charge off remarks: chargeoff account 

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Since there is a balance, it means Chase has not sold the debt. They have charged it off for tax purposes but they still own it. Which is likely why the collection company said what they said about Chase and reporting etc etc

If the collection account sn't reporting on your credit reports, there is a chance (good? fair?) it won't if you start payments.

The benefit of the CO being paid down is charge offs factor into utilization, so that balance owed is hitting against you there as well

-scott

[Anonymous]

They offered me a settlement, is it ok to accept that or will that still reflect negatively on my report? I have money in savings to pay the full balance but obviously don't want to pay the full amount if it isn't needed. I really appreciate you helping me with this!

[Anonymous]

Also since they stopped reporting  year ago, if I suddenly make a payment will those 12 months between show up negatively?