@Jazee wrote:I've got one charge-off on my credit report from 4 years ago (Chase) otherwise my report/score is pretty decent (average FICO in the 720-740 range depending on bureau and UTIs that month.) I received one settlement offer recently from Chase for 25% but don't have the cash to pay it. Planning on applying for a mortgage in about 2.5 years so the charge off will still be on my report but I expect my credit score will be in the 740-760 range at least by then. How important will it be for me to get rid of this charge off prior to mortgage application and could I not reach out to Chase at any time and negotiate a settlement when I have the cash available?
If that is updating monthly its holding down your Fico. You are going to have to clear it in order to close on a mortgage. If they are offering 25% now then I would negotiate payments on that.
I also had a charge-off for a Chase card. If you don't accept their offer, it will likely find its way to collections eventually (mine did) and then it may damage your credit even worse. The collection agency offered me a settlement of around 25% as well and accepts payment plans. I believe Chase will do the same if you can pay a certain amount each month or bi-weekly. If you can start making payments, that would be your best bet and at least stop the uncertainty of it getting worse.
You won't necessarily have to have it off your reports for a mortgage, but you will definitely have to pay it off prior to applying.
As for removal, being that they're the OC, it is highly unlikely they'll do so. If they're offering you 25%, I'd try to negotiate a payment plan on it as mentioned above. Once it's paid off, you can attempt to ask for GW removal, though of course, it'll be difficult.
