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Rebuild help

phase_xii
New Member

Rebuild help

Hello all!

 

Eight months ago I started to clean up my credit report in conjunction with rebuilding. I originally had 12 collection accounts and as of this week all of them have been settled and PFD. My score when I started was 496 and today it's 607 (both fico score 8 numbers). I know the CO accounts below that update each month are suppressing my scores but if I can't pay/settle them is it worth it to tackle any of them? They are all going to fall off my report in late 2022/early 2023. I know I run the risk of having CO accounts being sold/transferred and showing up as collection accounts. NavyFed/Americhoice/Lanco/Elan are unlikely to be sold and I have settlment offers for all except Lanco that would close out the accounts. The accounts with * are the ones I'd have the most difficulty paying. 

 

Elan financial (last status update 3/2021): $5,394*

Kohls/Cap 1 (last status update 3/2017): $1024
Macy's (last status update 3/2021: $871

Navy Fed CC (last status update 3/21): $99

Navy Fed CC (last status update 3:21): $1828

SYNCB/Amazon (last status update 5/20): $930

Target/Red Card (last status update 3/21) $2413*

Americhoice FCU loan (last status update 3/21):$495

Navy Fed personal loan (last status update 3/21): $7158

Lanco FCU personal loan (last status update 3/1`): $7000*

 

Current accounts:
Capital One auto loan

Capital One credit card x2 (combined limit $1200)

Merrick Bank credit card ($1500 limit)

Avant Credit card ($300 limit)

Upstart personal loan ($1400)

 

When it comes to negotiating these accounts is there any score benefit for paying in full as opposed to settling? From reading other threads it seems that it would only have an impact during a manual review. 

 

I appreciate any feedback. 

 

2 REPLIES 2
gdale6
Moderator

Re: Rebuild help

Some banks may blacklist you from further credit accounts but most will let you back in after a period of time. Credit Unions on the other hand if you ever want their credit products again you will need to PIF and not settle for less. If you cant pay then there isnt much you can do at this point but you can settle even after they drop off your CRs.

Message 2 of 3
850Dreamer
Frequent Contributor

Re: Rebuild help


@phase_xii wrote:

 

When it comes to negotiating these accounts is there any score benefit for paying in full as opposed to settling? From reading other threads it seems that it would only have an impact during a manual review. 

 

I appreciate any feedback. 

 


The score difference between a PIF and settled charge off / collection is negligible. Both still weigh down your score unless fully removed and both will decrease their impact over time until they fall off. Settled accounts still have a $0 balance but they have a notation showing that it was settled for less. The biggest consideration is settled accounts look bad in manual review because it shows lender took a hit and that same financial institution can blacklist you even if account was settled. 

 

If you are doing it just for the score, pay for delete isn't an option, and you just don't want to worry about the debt anymore then settle and don't worry about it. Your score card will be considered "dirty" by the algorithm until they are fully removed whether you PIF or not. 


FICO 8 Scores

FICO 9 Scores

Inquiries (12/24): EX: 4/6 | TU: 2/4 | EQ: 1/1
New Accounts (24 months): 7
Goal Cards:


Scores rebuilt from low 500's | Total CL's: $44,500 | Signature last updated 4/4/2021
Message 3 of 3
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