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Pay or not pay

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Moderator

Re: Pay or not pay


@KingJaffeJo wrote:
Mine is actually a charge off. The BOA rep stated that the charge off went into affect in 2014 and that it will stay on my report until 2021. With that being said, that made me believe that even tho I’m paying down on it, it wouldn’t reset the late payment clock meaning, seven years from my last recent payment. Am I correct?

The DoFD is set in stone it can never change even though you are making payments. What happens as you make payments is it keeps the CO brand new in the eyes of Fico even though it was years ago, this is why you want to pay if off as soon as possible to stop that monthly updating so it can age in Ficos eyes and your score begin to recover.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 11 of 20
Established Member

Re: Pay or not pay

So I’m basically hurting myself by making payments on it after that initial charge off?? I was better off just letting it fall off after 7 yrs then?
Message 12 of 20
Senior Contributor

Re: Pay or not pay

No, it's hurting you either way. If you did nothing and let it age off, it'd still keep dinging your score until it falls off. If you pay it off before the seven years, it'll stop suppressing your score and it will age as FireMedic said.
Currently rebuilding as of 04/11/2019.

Starting Scores:
EX 518
EQ 518
TU 521

Current FICO scores:
EX 577
EQ 555
TU 575
Message 13 of 20
Super Contributor

Re: Pay or not pay

You also want to pay it off if you ever want to get back in with BofA. They have an extremely long memory.







Message 14 of 20
Established Member

Re: Pay or not pay

Gotcha. Good to know.

One last question...Do you guys recommend PIF or asking for a settlement offer?
Message 15 of 20
Senior Contributor

Re: Pay or not pay

Depends on your finances. If you can't afford to PIF, see what they're willing to settle for. Paid CO is better than unpaid regardless of whether it was PIF or settled. Just keep in mind they'll send you a 1099-C for the unpaid balance which you may have to pay taxes on next year with your tax return if you settle.
Currently rebuilding as of 04/11/2019.

Starting Scores:
EX 518
EQ 518
TU 521

Current FICO scores:
EX 577
EQ 555
TU 575
Message 16 of 20
Established Member

Re: Pay or not pay

If I call them to do a PIF and not a settlement. What are the chances of them removing the charge off from my report?
Message 17 of 20
Moderator

Re: Pay or not pay


@KingJaffeJo wrote:
If I call them to do a PIF and not a settlement. What are the chances of them removing the charge off from my report?

In reality next to nil, OCs rarely do this unless its in the last year of being able to be report. The PFD is a tactic that was designed to take care of collection agencies on ones CR. You can make the offer to BoA and see what they say.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 18 of 20
Established Member

Re: Pay or not pay

So I'm going to call pay off my BOA CO this week. Is there anything I should do besides asking for a PFD? Is there any tactic that I should use/try when I call them up?
Message 19 of 20
Senior Contributor

Re: Pay or not pay

I don't know about "tactics," but if you do manage to somehow get them to agree to PFD, make sure to get it in writing. If they don't agree to PFD, then GW letters after paying it off is the best you can do.
Currently rebuilding as of 04/11/2019.

Starting Scores:
EX 518
EQ 518
TU 521

Current FICO scores:
EX 577
EQ 555
TU 575
Message 20 of 20
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