Navy Fed Charge-off Question

[JJL1293]

Hello,

I've been slowly rebuilding my credit (from around 470 to 580ish currently). One big negative on my report is a personal loan from Navy Federal for around 9k that is charged off. They sent me a letter agreeing to settle it for 3k, but from what I've read I won't be able to do business with them.

My question is, if I visit a local branch would I be able to reopen the account and continue making payments on it? Is there any possibility of getting the charge-offs removed? If this is possible, would it be worth it regarding my credit score?

Any suggestions are much appreciated!

Thank you.

[FireMedic1]

Welcome @JJL1293 If you could PIF you'd have full access again. If not. They offered you a pretty darn good settlement. Pay it so it quits updating each month. And the util will go to 0 thats affecting you now also. Charge off balances go against your credit util until paid. Even closed accounts as if it was open. The util is still a ding on top of the charge off. If you could make payment arraingements for the full amount that would be ideal.

[hpotterfan77]

I'm confused FireMedic1...you said if he PIF, he'd have full access again?  Meaning he would be good in NFCU's eyes again or they'd re-open the account.  I too have a CO from a credit card with them that I'd like to get taken care of a possibly work with them again but I don't know their policy.  Thanks

[Mzgemini_79]

I had a checking account that went bad due to overdrafts.  NFCU told me as long as I pay the balance I can open a new account.  I'm working on that now.  Replying to Hpotterfan77

[FireMedic1]

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@hpotterfan77 wrote:

I'm confused FireMedic1...you said if he PIF, he'd have full access again?  Meaning he would be good in NFCU's eyes again or they'd re-open the account.  I too have a CO from a credit card with them that I'd like to get taken care of a possibly work with them again but I don't know their policy.  Thanks

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Thing to consider, since it is NFCU, is that if you PIF, you will probably remain within their good graces regarding future loans and CC. If you settle, they may consider that "Burning Them" per say and then your relationship with them will be strained. They're no Cap1 that forgives that easily.

[hpotterfan77]

That's a checking account.  I was more referring to a credit card but thanks for the info.

[spiritcraft1]

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@hpotterfan77 wrote:

That's a checking account.  I was more referring to a credit card but thanks for the info.

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I would imagine that owning them money no matter for what product is what matters.  I am thankful that I was not a member prior to 2014 or they would have gotten burned by me.