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Pay off Charged off Amex?

darwin_wins
Established Contributor

Pay off Charged off Amex?

I used to have few cards along with Amex. I had decent score with no lates till I got sick, lost job and fell behind and now it's been few years since then. I have managed to get NFCU credit card, Capital One QS1 which got converted into Venture One to avoid AF. Got Penfed card just last month and have VX Visa card. I still have few baddies which are going to start falling off next year and end of next year report should be mostly clean. I tried paying a part of Amex and then didn't have money to pay the rest of it. At this point if I decide I could pay off Amex (1500) which will fall off July 2016 if I don't do anything. They have even stopped updating my reports (last update Nov 2014). If I do nothing I can never secure any of their products until they let me.  

 

 

Of course paying off is no guarantee that they will give me any card either. So is it worth paying that card off and see if they let me apply for a new a/c in future?

Message 1 of 12
11 REPLIES 11
developer1
New Member

Re: Pay off Charged off Amex?

I'm recovering from a bad Amex account and I would suggest, from my own personal experience, paying them off will be the better option. My first account with them I opened in 2012 was a charge off, even though they stop reporting it looks better to pay them off should you ever want another card with them. I finish paying the charge off in May of this year, by that time my credit was around a 650 and soon as I paid the remaining balance my TU score when up to a 670, now it’s at a 683. I was feeling ambitious and decided to reapply for the everyday card and to my surprise was approved for $3,500 and they generously backdated the account to show 2012. I don’t know if anyone else had this same luck but you should try to pay them if you can.

Message 2 of 12
gdale6
Moderator

Re: Pay off Charged off Amex?

I would go for the PFD and if they wont budge then leave it alone till it drops off your CRs then work out paying it off, if it updates now and they would have to do so by law to report the 0 balance its going to drop your Fico score.

 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/...

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

Message 3 of 12
darwin_wins
Established Contributor

Re: Pay off Charged off Amex?

 


@gdale6 wrote:

I would go for the PFD and if they wont budge then leave it alone till it drops off your CRs then work out paying it off, if it updates now and they would have to do so by law to report the 0 balance its going to drop your Fico score.

 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/...

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519


I just checked Experian report and it says it will drop off from the report in Feb 2016 and if I remember correctly TU will drop it off next July. I guess its better if I wait it out at this point. I wouldnt want an update to the account. After the drop off I can always call them and pay them so its 0 on their end, my score won't be affected and then by the end of next year I would have enough baddies out of the report, with change in score, Amex paid off I should be able to apply again and get them approved.

Message 4 of 12
chris6291
Established Member

Re: Pay off Charged off Amex?

If I'm not mistaken, didn't Amex stop backdating back in April or something? ! 

 


Starting Score: EX 568 | TU 569 | EQ 568
Current Score: EX 579 | TU 582 | EQ 570
Goal Score: EX 700 | TU 690 | EQ 680


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Message 5 of 12
wa3more
Established Contributor

Re: Pay off Charged off Amex?

I heard they stopped backdating as well.

 

You could try and settled , they might do a PFD. If  you want Amex in the future, you will have to PIF at some point.

Message 6 of 12
darwin_wins
Established Contributor

Re: Pay off Charged off Amex?

I already paid. Now I am just waiting for the application from Amex. Fingers crossed
Message 7 of 12
wa3more
Established Contributor

Re: Pay off Charged off Amex?

ah ok, good luck

Message 8 of 12
chris6291
Established Member

Re: Pay off Charged off Amex?

I know it's been a few days but I would like to add that you should definitely pay AMEX regardless if it falls off or not. When I was in college, I defaulted on about $500 and I was blacklisted (I couldn't be an AU on my dad's Amex and they wouldn't even pull my report for new apps). As soon as I paid them, I was able to be an AU and they pulled my report on new apps... So I think as long as you owe Amex, you're blacklisted regardless of amount ...

Starting Score: EX 568 | TU 569 | EQ 568
Current Score: EX 579 | TU 582 | EQ 570
Goal Score: EX 700 | TU 690 | EQ 680


Take the FICO Fitness Challenge
Message 9 of 12
darwin_wins
Established Contributor

Re: Pay off Charged off Amex?

Yea its paid off, I am yet to see a change in status on CR. I called them and asked when the update will be pushed and they said I should expect to see the change on 25th. So we will see if that happens. After that happens, I am hoping to see my Amex Optima app in mail in few days after that. The reason I paid off Amex without second thought, I wanted to be back with Amex. We will see how long everything takes though

Message 10 of 12
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