Collections and Charge Offs Reporting Monthly

[Mscredit101]

I am working on rebuilding credit after divorce.  I successfully completed a pay for deletion (PFD) on one collection account! However, there are other collections that won't delete and they are reporting these accounts every month.  Also, there is an older credit card account that is charged off (but not in collections), as well as an auto repossession loan deficiency balance account charged off (not in collections) and these are both still reporting monthly.  Will settling and paying these off increase my scores even though they are reporting monthly but not being deleted?  Also, when will they fall off if they are reporting monthly but remain unpaid?  Thank you for the advice you all give on these boards. It's very helpful!

[Remedios]

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@Mscredit101 wrote:

I am working on rebuilding credit after divorce.  I successfully completed a pay for deletion (PFD) on one collection account! However, there are other collections that won't delete and they are reporting these accounts every month.  Also, there is an older credit card account that is charged off (but not in collections), as well as an auto repossession loan deficiency balance account charged off (not in collections) and these are both still reporting monthly.  Will settling and paying these off increase my scores even though they are reporting monthly but not being deleted?  Also, when will they fall off if they are reporting monthly but remain unpaid?  Thank you for the advice you all give on these boards. It's very helpful!

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Collections and charge offs stop reporting once they are paid/settled or if lender/CA stops updating. 

Your score will increase over time once you pay. 

Charge offs and collections stay on your credit report no longer than 7.5 years from DOFD, but are usually removed at 7 years. 

[Mscredit101]

@Remedios. Okay. Great. Thanks for clarifying. So the sooner I can settle and pay them, the sooner they'll stop the monthly reporting and my scores can begin to increase, right?

[Remedios]

Yes, when updates stop, your scores start gradually recovering.
It's not an overnight thing, but it will happen.
Just one thing though, dont over extend yourself when you start paying.
Make payment arrangements if possible and stash some money away in savings.
That way if an emergency or extra expenses happen, you do not need to worry about making payments or fall behind in your rebuild.
Do it at reasonable pace while minding your finances first then everything else.
Every rebuild is different, and you need to find what works for you while preserving your sanity.
This can be pretty mentally taxing
Good luck and dont hesitate to ask if you have other questions

[Mscredit101]

Thanks again so much @Remedios. That's great advice about taking a reasonable pace because I felt the mental taxing trying to start when I looked at my current Fico reports and saw how many old accounts that are actually still reporting monthly. While it's nice that as I'm rebuilding, I'm learning more about how these credit issues work, it is also a bit discouraging because I thought I really only had to deal with the few collections I have, but now I have to address the charge offs too to make better progress. Uggh!!

[Remedios]

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@Mscredit101 wrote:
Thanks again so much @Remedios. That's great advice about taking a reasonable pace because I felt the mental taxing trying to start when I looked at my current Fico reports and saw how many old accounts that are actually still reporting monthly. While it's nice that as I'm rebuilding, I'm learning more about how these credit issues work, it is also a bit discouraging because I thought I really only had to deal with the few collections I have, but now I have to address the charge offs too to make better progress. Uggh!!

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Take your time, dont try wresting all issues at the same time. It can be pretty overwhelming.At some point, looking at the reports becomes quite a suffocating experience. Do what you can and feel good about what you're doing for yourself. 

[Mscredit101]

Amen and you're right! I'm trying to rebuild and also get my mortgage scores up to try to buy home again one day (FHA), and I really see that between clearing old debt issues, watching current credit utilization ratios, and DTI, among other factors, this is all just a process that just takes time. Thanks again and I appreciate the advice and encouragement. I wish you the best and maybe we'll cross paths again on these boards!

[ScooterMcDoodlebutt]

Don’t worry about your scores. Make a gameplan/budget and write it out how you will pay it down every paycheck. When you write it out & budget you’ll be surprised how it seems you have more money than before, and it is motivating to see your debt decreasing on paper with a finish line in sight. Once you get these paid off you will see your scores improving. GL!

[Mscredit101]

Thank you @ScooterMcDoodlebutt (Funny username, lol). Great advice about budgeting. You and Remedios have been very helpful. I'm going to just breathe and walk this thing down.