Credit Card

[Jayla127]

Hello Everyone,

I recently went through a divorce and I'm trying to rebuild my credit. Unfortunately, I have a charge off with a balance of 1200.00 left to pay.  2 credit cards in collections which I made an arrangement with the collection company to pay off. I have (3) more credit cards which are about to get a account restriction this Tuesday. I tried to talk with Cap One and I explained my situation to no avail. I can make payments to bring my account current but I can't until May. I told them I can pay the accounts off in full by June. They said, We are sorry but we don't have any programs that can help you. I'm in a bad situation right now but I know that it will get better.  What can I do to start getting my credit back on track. I know it will take a long time but I'm willing to take the ride.

Thanks for any advice that anyone can offer.

[RobertEG]

My first focus would be on the charged-off credit card.

It is common, after taking a charge-off, for the creditor to either assign collection authority to a debt collector or to sell the debt.

In either event, you would most likely have the addition of a collection to your credit report.

I would try to make some arrangements with them prior to involvement/reporting of a debt collector.

Can you offer a settlement for a portion of the debt?

When you can pay, you might wish to first make a pay for deletion offer.

[Jayla127]

I did call the (2) collection agencies that have the credit cards now.  The first company didn't budge with a settlement offer. They did say they can make a payment arrangement that works for me.  The (2) company told me that they can offer a 3 month settlement offer for a certain amount; then after that re-evaluate the my situation. Didn't understand what they meant. 

I asked them after the debt is paid, how does it reflect? They stated it's up to Cap 1