Three are credit cards/revolving and one is an installment ($5,388.00 balance). On the TransUnion report, all show a current 'date updated' and they're listed under "accounts with adverse information', so I'm assuming they're being reported monthly. I see the estimted dates of removal, too. Do you need that info?
Only if any of them are set to fall off very soon, bc it may be better in that case to just save the cash and wait. Are any of them falling off really soon, like in the next year or so or in a time frame where you feel it's worth waiting it out versus paying to help your scores sooner?
based on the dates estimated on the report, they're not falling off soon. most show 2025, one is blank, actually. but I wonder what that date is based off of and how the SOL comes into play.
Ok, there's a difference in credit reporting and SOL. The SOL is determined by your state's law, and determines how long a creditor or debt collector can legally sue you for the debt. For credit reporting, a delinquent account falls off your reports 7 1/2 years from the Date of First Delinquency (DoFD). Nothing can ever reset this date.
@Anonymous wrote:thanks for the feedback, all. I sincerely appreciate it. Here are more details:
Charge Offs (4 total)
1. Balance $3,745.00; Limit $2,700.00
2. Balance $12,641.00; Limit $12,000.00
3. Balance $2,423.00; Limit $2,000.00
4. Balance $5,388.00; Limit $5,200.00ish
Ok, here's the deal after getting all the info from the rest of your comments. The 3 charged off credit cards that are still being updated monthly are definitely affecting your revolving utilization %, and killing your scores on top of the monthly reported CO status. Paying/settling them WILL give you a score increase. The thing is, bc you have just your 1 credit card open now, you likely won't see an increase until you get them ALL reporting a $0 balance. When an account is charged off, you lose the credit limit for utilization scoring purposes, but the balance still counts against you. So, you have like $19K against whatever the CL of your 1 open card is...well over 100% utilization probably unless your current card has a $20K+ limit. So, it can be really discouraging let's say if you get that whopper $12K card paid off, and you see nothing happen score wise, bc you might still be at or over 100% utilization even when that one goes to $0. You should know up front, that's how it will happen. You likely will not see a score increase until they're all at $0, or at least under the amount of your current card's limit. Since there are no collections agencies associated with these, you don't have to fight the PFD battle to get CAs removed to avoid the CO/CA double whammy. The installment CO hurts too, but not as bad as the revolvers. I would focus on paying the revolvers first, and then the installment. I don't know what your cash position is like, but getting the revolvers paid/settled will offer you an immediate score increase once they stop affecting your utilization %. They will also begin the aging process, hurting your scores less and less until they fall off.
Collections (1 total)
1. Medical Debt; $1,200.00
For a collections account, you want to do everything possible to get the account removed from your reports in exchange for your payment. A paid collections account offers no immediate score increase to FICO 8 scores if it stays on your reports as paid. You want it removed. There are several options to get this result...especially with medical collections. You can see if it was an insurance error, and have it rebilled to insurance to get the collection removed if your insurance should have paid it. If it's a legitmate bill that you're responsible for, you can call the doctor/medical provider and ask them to recall the debt from the CA in exchange for your payment. You can call the CA and ask if they will delete it from your reports in exchange for payment (PFD). It's generally a lot easier to get medical collections removed than other types of collections.
It's a mess. Writing this out truly makes me feel ill and incredibly irresponsible. I struggle with keeping the momentum going; my greatest issue. It's a marathon (unfortunately, for me) not a sprint. It will take time and I really get that. Separately, my husband and I each have one credit card (current) and carry low balances on each and they're in great standing. We intentionally have a monthly expense that goes to each card and pay them off in full each month; just to build the history, etc. Good idea, bad?
Perfect. Put your Netflix, buy a tank of gas, whatever, and then pay it off each month. You may even consider a second card to do this with to get more positive history reporting. You may have to get a secured card, but there are lots of options. Discover secured and Cap One are both great options.
Now...do you think it's time to begin contacting the creditors/collection agencies and negotiating a lump sum payment amount? I want to get a solid plan in place, but I'd be remiss to not be curious about SOL. In your experience, is that worth pursuing? Or do I go directly to negotiations and ensure I have the amount to pay the day of the contact?
As I said responding to one of the other posts, you can't reset the credit reporting times no matter what you do. Each delinquent account will be removed 7 1/2 years from the DoFD of that account. The SOL is something different entirely, and is dictated by your state's laws. You CAN reset the SOL for which a creditor can sue you for the debt by making a payment, or even by just acknowledging the debt in some states. My advice is to contact each one only when you have the funds ready to make a deal. You'll get better terms if you have a lump sum ready for payment. When you're ready, call, negotiate a settlement offer you can afford, get them to email you an agreement saying the will consider your account 'settled in full for a payment of $xxxx.xx', and then pay them once you have the agreement in writing (email is fine).
I know it can be really overwhelming, but you're taking the first steps already, and I wish you luck. We're here if you have more questions.
@Anonymous wrote:thanks for the free credit report tip!! I had no idea.
@Anonymous You are most welcome!
Starting Score: Exp 627