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Rebuilding credit after paying off 1 charged off account and 1 closed account

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kayann02
Established Member

Rebuilding credit after paying off 1 charged off account and 1 closed account

My score: 570

Partner's: 520

Hi. So, thanks to my dad, I started my adult years with a very good credit score (780). I'm 21 now, and after several stupid financial decisions, my score has tanked to around 570.
I have one account that has a balance of $3220- limit was $2500- that was charged off and sent to collections on October 8th. However, it was reported as a charged off account, nothing about collections. Weird.
My capital one card had been maxed out, but I paid it down and it's still open. Next week it'll be at $1,500 out of its $2,500 limit. A credit one card was charged off recently, but I owe nothing apparently. Called to make sure. That only dropped my Equifax score. I don't see it anywhere else, oddly. 

My partner had 2 cards, Chase and Capital One. Capital One was recently charged off (got the letter today) and is apparently serviced by their recoveries department. Probably means internal collections. Hopefully it doesn't show as collections on his report. That balance will be paid in full tomorrow ($1,365). Chase was closed, but thankfully we set up a payment plan before it was charged off. It'll be fully paid by mid December though ($2,520).

The one credit bright spot we do have is our car loan with flawless history. Never missed a single payment. Also I'm an authorized user on my dad's card so his history is on my credit report.

 

Anyway....how much would our credit really improve after doing all of this? How should we continue to improve our credit? Our goal is to be at least in the high 600s or low 700s.
My short term goal is to get to 605-610 as we want to get a new car, and the finance person said paying down my Capital One balance, paying off his debt and getting my score in the 600s should greatly improve our approval chances. (Based on the reasons given for denial). A week or so ago we applied for financing but couldn't get it w/o a co-signer. 

Thanks for any advice!

Goal score 725
11/23 Exp 560 EQ 540 TU 550
12/23 Exp 582 EQ 559 TU 581
01/24 Exp 637 EQ 632 TU 627
All FICO 8 scores
4 REPLIES 4
kayann02
Established Member

Chase charged off account sent to collections- how does this look on my credit report?

Background: My score- 570 Partner's- 520


Hi. I’m 21, had very good credit (780) thanks to my dad and I made very stupid decisions starting at 18. Maxed out 2 cards with a $2500 limit. I now owe $3,220 on an old Chase card that was charged off. It was sent to a collections company on October 8th, and reported on my credit report as a charged off account on November 8th.

 

My question is, will the collections also show on the report? Or only the charge off? I say “only” because although a charge off looks horrible, a charge off AND an account in collections on the report looks even worse. I’m confused as to why it hasn’t been reported as both.

 

Will it eventually show as an account in collections or will it show as a charged off account? I couldn’t find an answer to this anywhere. Just wondering from anyone’s experience or inside knowledge, maybe someone would know.

 

Thanks!

 

And yes, I’m working on the credit situation. My installment plans were paid in full last year and my one credit card is still open and under its credit limit. Next week it’ll be $1,000 under.

 

My partner’s debt with Chase and Capital One (C1 charged off in internal recovery (collections?) being paid tomorrow in full, Chase is closed not charged off with a payment plan but will be paid in full by Dec 8th). That’s $5,185 of debt gone! Yay.

 

We want to buy a new car together, have very good paying jobs and that’s the kick in the butt that got us moving. Probably will be a while. We can afford the car payments even at a high APR, but even when our scores go up the banks will see our charge offs and deny immediately.

 

My credit is only slightly better than my partner's because my dad's great credit history is still reporting on my credit. My credit one was charged off at $200 (forgot to pay) but I don't owe anything. Fully written off. Called to make sure. 

 

But yeah, for that purpose, I’m curious on how my report will look.  

Goal score 725
11/23 Exp 560 EQ 540 TU 550
12/23 Exp 582 EQ 559 TU 581
01/24 Exp 637 EQ 632 TU 627
All FICO 8 scores
Message 1 of 5
Jnbmom
Credit Mentor

Re: Rebuilding credit after paying off 1 charged off account and 1 closed account

Please refrain from posting several threads with the same subject and questions . Causing confusion 

EXP 780 EQ 791TU 795
Message 3 of 5
SouthJamaica
Mega Contributor

Re: Chase charged off account sent to collections- how does this look on my credit report?


@kayann02 wrote:

Background: My score- 570 Partner's- 520


Hi. I’m 21, had very good credit (780) thanks to my dad and I made very stupid decisions starting at 18. Maxed out 2 cards with a $2500 limit. I now owe $3,220 on an old Chase card that was charged off. It was sent to a collections company on October 8th, and reported on my credit report as a charged off account on November 8th.

 

My question is, will the collections also show on the report? Or only the charge off? I say “only” because although a charge off looks horrible, a charge off AND an account in collections on the report looks even worse. I’m confused as to why it hasn’t been reported as both.

 

Will it eventually show as an account in collections or will it show as a charged off account? I couldn’t find an answer to this anywhere. Just wondering from anyone’s experience or inside knowledge, maybe someone would know.

 

Thanks!

 

And yes, I’m working on the credit situation. My installment plans were paid in full last year and my one credit card is still open and under its credit limit. Next week it’ll be $1,000 under.

 

My partner’s debt with Chase and Capital One (C1 charged off in internal recovery (collections?) being paid tomorrow in full, Chase is closed not charged off with a payment plan but will be paid in full by Dec 8th). That’s $5,185 of debt gone! Yay.

 

We want to buy a new car together, have very good paying jobs and that’s the kick in the butt that got us moving. Probably will be a while. We can afford the car payments even at a high APR, but even when our scores go up the banks will see our charge offs and deny immediately.

 

My credit is only slightly better than my partner's because my dad's great credit history is still reporting on my credit. My credit one was charged off at $200 (forgot to pay) but I don't owe anything. Fully written off. Called to make sure. 

 

But yeah, for that purpose, I’m curious on how my report will look.  


I've never had either, but I'm pretty sure it's either one or the other, but not both.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 4 of 5
atst2000
Frequent Contributor

Re: Chase charged off account sent to collections- how does this look on my credit report?

Unfortunately both will show, the Chase charge off and the collection account for the charge off. 
I was young once and I've been through it. It sucks but not the end of the world. 

There are some options you might want to try. As much as I personally cannot stand bill collectors, it might be in your best interest to see if they will work with you to settle and perhaps where it won't report on your credit report. It's a case by case scenario and not every bill collector will agree to it. 

Wish you the best. 

Message 5 of 5
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