Charged off account impact.

[Anonymous]

Hello, what’s a good way or is there any other way to get better credit card approvals with charge offs on the account?? A while back being young and dumb not realizing the importance of credit I used up and never paid on 3 credit card accounts and is now showing up on my report as charged off/ bad debt. Now that I realize the importance of credit, I’ve been working on it this last year and raised my credit score from 455 to 660 within 6 months by disputing derogatory marks and opening up 2 secured cards and being responsible with those. Now that I’m trying to make my score get even higher, I’ve been trying to apply for unsecured and should have graduated from one of my secured cards by now. But I’m having trouble and believe that it may due to the charged off accounts. I’m willing to pay them but to my understanding, even with paying them off they’ll still be on my report as bad debt for 7 years. Does anyone have any other suggestions of what may approve my chances of getting approved for an unsecured card despite the charge offs?

[Meanmchine]

I suggest you take this question to the Rebuilding section as you will probably get more personalized help there then here

Good luck

[Brian_Earl_Spilner]

Well, paying them off will reduce the chances of being sued, to zero, so there's that. In addition, some banks count the owed balances towards your DTI. Also, credit unions have started moving on to using FICO 9 and paid charge offs carry almost no weight with that score. Lastly, there are lenders like amex who will blacklist you if you still owe them money. It isn't unheard of to need to wait 10-20 years to get back in with them after never paying them back while people who have can get back in within a few years.

So, start paying off your charge offs.

[Anonymous]

Ok, thanks. I’m new to this

[Anonymous]

Thank you for the info, guess that will be the best decision!

[Brian_Earl_Spilner]

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@Anonymous wrote:
Thank you for the info, guess that will be the best decision!

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No worries. The chargeoffs will always hold you back until they fall off. But you run the risk of it being sold and popping up again for another 7 years. Better to just take care of them.

[UpperNwGuy]

Pay your chargeoffs.  Focus your search for new credit on other banks.  Don't try to "get back in" with the chargeoff banks.

[UncleB]

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@Meanmchine wrote:

I suggest you take this question to the Rebuilding section as you will probably get more personalized help there then here

Good luck

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+1

Moving thread to 'Rebuilding Your Credit' for additional input.

--UB