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Paying Charge Offs/ Collections. Worth It?

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Anonymous
Not applicable

Paying Charge Offs/ Collections. Worth It?

 Hello everyone I'm pretty sure everyone has seen a subject about this, but when i research about this topic is a little confusing/frustrating. i tend to only find grey answers or answers that just don't quite explain as to what I'm asking. Or maybe I'm not asking the correct questions, tell you the truth i just started trying to rebuild myself and its a lot to take in.

 

   So my question is, in yalls opinion what should i do about charge offs and collections. Other than maybe one that is in collections are pretty much do able on paying them off. When i pull the CR on all 3 agencies, there are 3 that stand out. These are collections 2 of them are less than 500 and one that's about 2500. The 2 smaller ones are from 2019 and the higher one is from 2017. Then i have a few more that say charge off with a zero balance under closed account and i believe 1 or 2 not to sure i would have to check again but they still have a past due balance (guessing a % was charged off).

 

  If anybody has any type of advice i would greatly appreciate it. As of right now i do have drafts of letters for S2D for most CO/CAs. i just need to know if i should take the next step in that direction or reroute a different way. Also not sure if this helps but EX 597 TU 617 EU 626 these are all FICO 8 scores as of yesterday.

Message 1 of 18
17 REPLIES 17
Boribori
Contributor

Re: Paying Charge Offs/ Collections. Worth It?

I'm in the same boat. I've tried disputing them, but to no avail. All you can do now is either wait the 7 years for them to fall off or pay them. Settling may be your best bet just make sure you have the money in full. Start at 10% and make your're way up. 


Total Credit Limit : $29,600
Message 2 of 18
mycreditscoreisfair
Frequent Contributor

Re: Paying Charge Offs/ Collections. Worth It?

In short, the best case scenario: pay off your collections with a pay for delete (PFD) agreement and have them all removed from your credit reports. Pay off your charged-off accounts (based on what's been provided, it's a bit confusing as to the status of those). Paying your charge-offs will stop them from from affecting your credit utilization.

 

You'll likely get a lot more help if you list your debts and who their with (at least). The more info you provide, the more help members here can provide.

Starting score (January 2020): 454 (TU)
First goal (December 2020): 580 (TU)
Second goal (August 2021): 670 (TU)
Current scores: 679 (TU), 665 (EQ), 658 (EX)
Current goal: All three bureaus over 670

Declined credit cards: First Premier Bank, Verve, Self, Credit One, Today Smiley Happy
Message 3 of 18
mycreditscoreisfair
Frequent Contributor

Re: Paying Charge Offs/ Collections. Worth It?


@Boribori wrote:

I'm in the same boat. I've tried disputing them, but to no avail. All you can do now is either wait the 7 years for them to fall off or pay them. Settling may be your best bet just make sure you have the money in full. Start at 10% and make your're way up. 


I don't want to offend anyone but I think it's important to say a few things.

 

1. Disputing legitimate debts is a terrible idea. Often times, you'll wind up in a worse spot then you started when the debts are verified.

 

2. You generally do not have to pay a debt collector or an original creditor in full. Most (all in my experience) debt collectors and lenders are willing to take payments.

Starting score (January 2020): 454 (TU)
First goal (December 2020): 580 (TU)
Second goal (August 2021): 670 (TU)
Current scores: 679 (TU), 665 (EQ), 658 (EX)
Current goal: All three bureaus over 670

Declined credit cards: First Premier Bank, Verve, Self, Credit One, Today Smiley Happy
Message 4 of 18
Anonymous
Not applicable

Re: Paying Charge Offs/ Collections. Worth It?

no offense taken at least from this side. any advice is advice i didn't have that's why im here cause i cant do this on my own for awhile i wasn't sleeping just researching and researching and researching that pretty much landed me in the same spot. but yes i can get a list of everything and list on here and any help is received. thank you again for the quick response @mycreditscoreisfair , @Boribori 

Message 5 of 18
Anonymous
Not applicable

Re: Paying Charge Offs/ Collections. Worth It?

@Anonymous For the most useful feedback, please present the following:

 

original creditor/original limit/balance currently/status (collection, chargeoff, etc)/current owner of debt/date of chargeoff/collection

 

This can help us help you prioritize who to pay first and so forth. Some will pay for delete, some will sue, some will settle, etc, so knowing these points will assist in attacking this the best way.

 

Also, include current accounts in good standing, as knowing that will help us guide you to lenders you can approach to further your rebuild.

Message 6 of 18
Anonymous
Not applicable

Re: Paying Charge Offs/ Collections. Worth It?

thank you will do also. how do you set up the stats the way you have it at the bottom. is there a video or a page showing how to set it up curious. thanks again @Anonymous 

Message 7 of 18
Anonymous
Not applicable

Re: Paying Charge Offs/ Collections. Worth It?

Sent you a message with the code.

Message 8 of 18
Anonymous
Not applicable

Re: Paying Charge Offs/ Collections. Worth It?


@Anonymous wrote:

@Anonymous For the most useful feedback, please present the following:

 

original creditor/original limit/balance currently/status (collection, chargeoff, etc)/current owner of debt/date of chargeoff/collection

 

This can help us help you prioritize who to pay first and so forth. Some will pay for delete, some will sue, some will settle, etc, so knowing these points will assist in attacking this the best way.

 

Also, include current accounts in good standing, as knowing that will help us guide you to lenders you can approach to further your rebuild.


here is the info you were asking about. also i wasnt able to get that code to work kept saying that i had to fix the highlighted areas. guess i was doing something wrong, no worries.

 

1. Portfolio Rec. (Collections)
(First Access CC)(Bank of Missouri)
$300 Org.
$370 Bal Due
Charged off- 2/20
TBOM also reporting Charged off -$0

 

2.AD ASTRA Recovery Serv.(collection)
Speedy Cash Loans
$175 Org.
$303 Bal. Due
Collections- 5/19

 

3.Amsher Collection Serv.(collections)
T-MOBILE
$2241 Org.
$2241 Bal. Due
Collections- 6/20

 

4.First Premier (closed)
not sold but keeps reporting
$300 Org
$436 Bal Due
Charged Off- 11/19

 

5. Regional Finance (closed)
not sold
$1200 Org.
$1741 Bal Due
Collection/Charged Off- 11/18 (closed on 1/21)
Acct was opened on 2/17
Profit and Loss write off
(Rims and Tires Shop)

 

6.Conns (closed)
$4760 Org.
$2968 Bal Due
Charged Off 7/17
Received judgement papers from them nut doesnt show on any of my reports.

 

7.Sun Loan
$541 Org.
$1420 Bal. Due
Collection/Charged Off - 2/15
still reporting and also says acct. increases by $11 or sometimes $12 each time they report to the agencies.

 

1. Capital One Platinum - Good standing 

2. Indigo - Good Standing -

3. Aspire - Good Standing _

4. USAA Signature Visa - Good Standing

5. OpenSky - 30, 60 on account 12/20, 1/21
           -Currently Good Standing
6. Fedloan - Good standing

7.Self credit builder - Good Standing

recently got an auto loan through Capital One, that will show up with in the month or two.

 

again want to thank yall for taking the time to help out

Message 9 of 18
SewUGroo2
Member

Re: Paying Charge Offs/ Collections. Worth It?

For my peace of mind, it's worth it to just pay it off.
If I run up a bill, then I have to pay it. I paid off my 7 year old $5000 AMEX bill last year and got approved for an AMEX platinum a few days ago. I'm finally back on track and ready to start traveling again. It feels so good not to owe anybody anything.

Starting Score: 604
Current Score: 798
Goal Score: 825


Take the myFICO Fitness Challenge
Message 10 of 18
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