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Charged Off CCs and Collections Advise

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burghboy
Established Member

Charged Off CCs and Collections Advise

I have several charged off CCs dating back 5 years and a few collection accounts about 2 years old. Need help if anyone out there can help: Should I be looking to settle the charged off CCs first or the Collection Accounts? Will settling a charged off account (and CR updated to Settled in Full NOT Paid in Full) ding my score? I am debating whether to just sit back and do nothing and have them run their course in tow more years when they drop off, or settle now and raise my score. I read some places, my score could actually take a hit if I settle. ANy advise will be appreciated.

2 REPLIES 2
jcooks
Established Contributor

Re: Charged Off CCs and Collections Advise

If you're looking to get back in the door of any of the lenders that get burned, I would recommend paying in full or at least settling for less.

Message 2 of 3
Anonymous
Not applicable

Re: Charged Off CCs and Collections Advise

It really depends if the COs are updating monthly or just sitting idly by on your report as a CO. If you are looking to improve your credit, I would contact the collection accounts and request a PFD (Pay for delete). Try offering 50% of the balance for them to delete it from your report, not just update as paid. Some do, some don't. If the COs are not updating monthly and reporting to the bureaus, I personally wouldn't wake a sleeping giant and would let it run its course, unless you have a reason to pay off the COs, besides moral obligations. 

Message 3 of 3
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