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Need advice on rebuilding, old chargeoffs

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Anonymous
Not applicable

Need advice on rebuilding, old chargeoffs

Hey guys,

 

Need some advice on how to improve my FICO scores

 

Currently my FICO scores are EQ 624, TU 608, EX 622

 

I have 5 unpaid charge offs on my credit reports from 2014-2015 (Bank of America $9540, Bank of America $6101, Amex $8655, Toyota Financial $17,890, Honda $9570). I have been worried about getting sued for these with Bankruptcy as what i would need to do if i got sued.

 

My Current Credit Cards are:

1st Financial Bank USA opened 8/2009, CL $1,250, Utilization 18%

Credit One, opened 11/2016 , CL $1,200, Utilzation 30%

NFCU Secured Card opened 3/2017, CL $1,000, Utilization 5%

CFNA (Firestone), opened 9/2016, CL $1,000, Utilization 48%

Kay Jewelers, opened 3/2013, CL $906, Utilization 45%

Nordstrom, opened 11/2016, CL $3000, Utilization 6%

 

Total CL: $8,356

 

Authorized User Accounts:

Discover, opened 2003 CL $6,800 UTL 0%

Capital One, opened 2008, CL $2,000 UTL 0%

NFCU, opened 3/2017, CL $10,000 UTL 0%

NFCU, opened 3/2017, CL $1,000 UTL 0%

CHASE, opened 3/2017, CL $5,000 UTL 0%

 

Total AU CL: $24,800

 

Current Auto Loan:  Global Lending Services, opened 2/2016, 15.45% APR, 72 months $597/m

 

What i would like to accomplish by the end of this year:

1. Refinance my current auto loan for a much lower APR

2. Get my FICO's to 680's

 

Should i be trying to settle the charged off accounts? Would NFCU refinance my auto loan or give me a mortgage without those being paid off? My concern is i don't have enough to settle all of them and if i settle 1-2 and then get sued by another then i would have to file bankruptcy and i could've just done bankruptcy to begin with. I rather not file bankruptcy but what is the likelihood that i won't get sued or that i still have alot of time before i can settle the other accounts?

 

Thank you

18 REPLIES 18
rmduhon
Valued Contributor

Re: Need advice on rebuilding, old chargeoffs

Pull your actual credit reports from annualcreditreport.com and see what the DoFD or estimated date of removal is for each account. What is the SOL for your state? Taking care of the charged off cards will be best for your scores because they are being calculated in your UTI.
Message 2 of 19
Anonymous
Not applicable

Re: Need advice on rebuilding, old chargeoffs

Im very shocked your scores are actually decent with all those charge-offs. If I seem to remember correctly in the late 90's when I let a bunch of cards go my scores were mid-400's for at least 2 years. Even with about 10 accounts in good standing and no utiilization. 

 

Further, im even more shocked that Nordy's gave you a $3K(!) credit limit a year after accounts were charged off. Your credit scores are very decent. Maybe in another year or two they will be mid to high 600's. Just leave everything alone or you will restart the clock. Hopefully nobody will sue you, and they may not.

Message 3 of 19
A1Credit
Established Contributor

Re: Need advice on rebuilding, old chargeoffs


@Anonymous wrote:

Im very shocked your scores are actually decent with all those charge-offs. If I seem to remember correctly in the late 90's when I let a bunch of cards go my scores were mid-400's for at least 2 years. Even with about 10 accounts in good standing and no utiilization. 

 

Further, im even more shocked that Nordy's gave you a $3K(!) credit limit a year after accounts were charged off. Your credit scores are very decent. Maybe in another year or two they will be mid to high 600's. Just leave everything alone or you will restart the clock. Hopefully nobody will sue you, and they may not.


I was thinking the same thing!  That poster's scores are very decent to have 5 charge offs.

***Gardening 3/29/2018 until 9/25/2018***

FICO 8 Scores: EQ~692 l TU~657 l EX~669
Message 4 of 19
Anonymous
Not applicable

Re: Need advice on rebuilding, old chargeoffs

With nearly $50k in charged off debt, I would say ure sitting on a ticking time bomb. Best case scenario, u don't get sued but the companies keep clearing their books and these bounce from Charged off to collection to collection to collection which will eventually tank your report enough that the AU CCs won't be able to save the score. Check the SOLs on each then start by contacting any that are still within it. Worry about the others in a 2nd phase, and hope they arent sold by the time you get to them.
Message 5 of 19
Anonymous
Not applicable

Re: Need advice on rebuilding, old chargeoffs


@rmduhon wrote:
Pull your actual credit reports from annualcreditreport.com and see what the DoFD or estimated date of removal is for each account. What is the SOL for your state? Taking care of the charged off cards will be best for your scores because they are being calculated in your UTI.

SOL in my state is 4 years

 

BOA   $9540    -   DOFD 7/2014

BOA   $6101    -   DOFD 7/2014

AMEX    $8655    -    DOFD 5/2014, Amex deleted all late payments just left charge off derog 

TOYOTA MOTOR     $17890    -    DOFD 7/2014

HONDA     $9570    -   DOFD 4/2015

 

 

 

Message 6 of 19
Anonymous
Not applicable

Re: Need advice on rebuilding, old chargeoffs


@Anonymous wrote:

Im very shocked your scores are actually decent with all those charge-offs. If I seem to remember correctly in the late 90's when I let a bunch of cards go my scores were mid-400's for at least 2 years. Even with about 10 accounts in good standing and no utiilization. 

 

Further, im even more shocked that Nordy's gave you a $3K(!) credit limit a year after accounts were charged off. Your credit scores are very decent. Maybe in another year or two they will be mid to high 600's. Just leave everything alone or you will restart the clock. Hopefully nobody will sue you, and they may not.


I was in mid 400's until about 12 months after then it skyrocketed after getting a bunch of accounts paid on time

 

Nordstrom is great, they started me with a $300 line and then gave me an auto cli to $3000 on the 3rd statement

Message 7 of 19
Anonymous
Not applicable

Re: Need advice on rebuilding, old chargeoffs

Bump.

What i would like to know is if i filed bankruptcy would it drop my scores again since they are already damaged with charge offs
Message 8 of 19
RobertEG
Legendary Contributor

Re: Need advice on rebuilding, old chargeoffs

Yes, the BK would be an added major derog and would affect scoring in addition to the previously reported derogs.

Message 9 of 19
Anonymous
Not applicable

Re: Need advice on rebuilding, old chargeoffs


@RobertEG wrote:

Yes, the BK would be an added major derog and would affect scoring in addition to the previously reported derogs.


But don't some banks like BOA remove the tradeline if it is IIB? Cause in that case they would remove the BOA chargeoff's and leave the bankruptcy?

Message 10 of 19
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