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I'm hoping to rebuild my credit (My progress thread)

thornback
Senior Contributor

Re: I'm hoping to rebuild my credit

I would call and ask if they would agree to notate the settled payment as "PAID IN FULL" or just "PAID" as opposed to "SETTLED FOR LESS" or "SETTLED".

The biggest downside to settling is how it may be viewed by other creditors as they decide whether to extend credit to you. Settling indicates a refusal or inability to repay the entire debt, so may have an impact on approval or how much of a credit line you are granted if the decision is made by manual review of your reports.

The other minor concern is having a future relationship with Cap1. Seems you'd have better chance of forgiveness resulting in good future experiences with them if you pay them what you owe.

However, it ultimately comes down to your current financial ability and your personal feelings. If paying in full will hurt your pockets, then settle. If you are not necessarily concerned with having a future relationship with them, then settle. I really don't know how forgiving Cap1 is..they may not hold grudges like other lenders so whether you settle or PIF may not even matter much in that respect.

Either way, bringing that balance to zero and letting the account age is most important.
Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 21 of 54
kev2018
Contributor

Re: I'm hoping to rebuild my credit

Thanks.

 

I actually asked that question in the morning when Alliance One called me to offer me the settlement. The lady was saying it will appear as "Settled in full" and "there will be no further obligations". I asked if she means paid in full, she confirmed it would be 'settled' in full. Which I guess means that I paid the full settlement that was offered to me, rather than pay the original balance in full. That's how I took it. She clearly kept using "settled" in full though.

 

It also appears as if they don't do any negotiations. She told me Alliance One can't do anything about how a payment shows up on the credit report, she said it's up to Cap1.

Message 22 of 54
thornback
Senior Contributor

Re: I'm hoping to rebuild my credit

Soo..basically they will report "Settled in Full" to Cap1, and then Cap1 will update your report. You can still call Cap1and ask if, once they receive settlement payment confirmation from Alliance, if they'd be willing to adjust the way its reported. It surely doesn't hurt to ask.
Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 23 of 54
kev2018
Contributor

Re: I'm hoping to rebuild my credit

I get the feeling I will get the dreaded "we must report accurately". But you're right, I should call and ask, maybe I don't get a robotic account manager, maybe i'll get a human account manager.

Message 24 of 54
thornback
Senior Contributor

Re: I'm hoping to rebuild my credit

That's the spirit!! In this rebuild game, you cant let all the NOs discourage you because if you do, you may miss that one chance at a YES.

Good Luck!!
Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 25 of 54
kev2018
Contributor

Re: I'm hoping to rebuild my credit

Since I paid my charged off First Premier and Comenity Bank (Eddie Bauer) cards in full a while ago, I want to ask the original creditors to take them off my report. I found First Premier's email, but I can't find Comenity Bank's email. Anyone know it?

Message 26 of 54
thornback
Senior Contributor

Re: I'm hoping to rebuild my credit

First Premier is adamant about not removing accurate reporting.   You will likely have zero success in Goodwilling them.  They have a publically published policy: www.premierperspectives.com/goodwill-letter-requests/    -- So don't be surprised when you receive the standard "We are reporting accurately" response from Julie. Not saying you shouldn't try though - you never know! 

 

Generally, FP will only remove if you can prove incorrect reporting on their part -- so if you can find some inconsistencies in the way the account is reporting across the three bureaus (DOFD, or payment history maybe), you can try to pursuade them on that basis - I've seen where others have had great success getting them to delete based on inaccurate reporting.

 

As for Comenity, I don't have any info on them -- but you should start a new post for better visibility so other folks to chime in - I'm sure someone has contact info.  

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 27 of 54
kev2018
Contributor

Re: I'm hoping to rebuild my credit

tmr, I got a response from FP fairly quickly. I sent them an email this morning and got a response this same morning from "Office of the President", the email is actually not replyable, because I replied with a thank you email and it gave me an error "undeliverable message". The email said my account will be reviewed and I will get a response in 10-15 days. I'll keep my fingers crossed that the response is good news but now that you say that I guess i'll brace myself for bad news. If I can remove one charged off account that was PIF and won't drop until like 5 years from now, i'll be so relieved.

Message 28 of 54
kev2018
Contributor

Re: I'm hoping to rebuild my credit

Btw I paid $600 of the $999 I owe to Cap1, I also opted out of the settlement. I want to PIF. I will pay the rest by the end of March, so I should be revolving-debt-free soon and hopefully I can climb out of the 500s fico score.

Message 29 of 54
kev2018
Contributor

Re: I'm hoping to rebuild my credit

A little update, seeing improvement in my scores. Finally got out of the 500 range across the board.

Last FICO update I made here: 566 (EQ), 602 (TU), 591(EX)

Current: 607 (EQ), 615 (TU), 620 (EX)

Will come back and update in 2-3 months. I’m so relieved to not see 5xx anymore in any of my fico scores.
Message 30 of 54
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