Seeking help for Settlement or PFD

[Saffyreblue]

I want to try to buy a house next year.  Hubby has several charge offs on his credit:

Capital One  $1,436

Credit One   $734

Target           $393

Citifinancial  $10,247

First Premier   $399

Robert Wood Johnson  $100

This totals about $13,309, we can afford between 50-60% for a PFD on each account.  The only one that shows on his credit report under both the OC and a factoring company is the First Premier.  My first question is, if I get the CA to agree to a PFD of this account do I also have to get the OC to agree to a PFD?  Second question, since these are all charged off, what is the best course of action? 

Thank you.

[Anonymous]

First, you need to find out who owns the debt, the OC or the CA.

Besides the FP, who is reporting, the OC or a CA?

Are you still within your states suing SOL?

A PFD is sent to who is reporting on your CR.  If you offer a PFD to the CA it does not remove the OC TL.  You could not turn around and then offer the OC a PFD because it would be illegal of them to take money for an already paid account.

[Anonymous]

In my experience - deal with the OC only. Make an agreement in which if you settle out they will report to the CB as paid in full and agree to remove the item. Paying the CA will keep the OC on your report, or will be difficult to get off. Good luck

[Saffyreblue]

Thanks for the help.

Yes they are all withing the state SOL.....According to his credit reports, all the debts except for First Premier are reporting by the OC.  The FP account reports by the OC as "charged off" and the CA is reporting the same account as follows:

ASSET ACCEPTANCE LLC
Placed for collection: 02/21/2012
Responsibility: Individual Account
Account Type: Open Account
Loan Type: FACTORING COMPANY ACCOUNT
Balance: $420
Date Updated: 01/27/2013
Original Amount: $398
Original Creditor: FIRST PREMIER BANK (Retail)
Past Due: >$420<
Pay Status: >In Collection<
Remarks: >PLACED FOR COLLECTION<
Estimated month and year that this item will be removed: 03/2017

I assume I should PFD the OC's on the other accounts, but I don't know what to do about this one as it shows as charged off on the OC's line, but the CA/Factoring Company shows the balance due.

Thank you!

[Anonymous]

You want to be careful doing a PFD on a OC account unless you don't care about AAoA.  If these are his oldest accounts it could cause you to lose all of that.

Does FP show a balance?  If not they do not own the account and you need to work with the CA.

[Saffyreblue]

No.  The account states "Sold to Asset Acceptance Corp"

Does this mean if I get Asset Acceptanct to PFD then the original TL will be deleted too?  Or will it show as a charge off on the credit report until 2017?

These are not his oldest accounts, but his oldest accounts show as "Account relationship terminated" because I had removed him from my accounts as an authorized user.  He didn't have anything in his name at that time.  So, he doesn't have any other accounts that were his as "individual".  I assume this will hurt his score, but it has to hurt more if I leave these charge offs on there right?  Would it hurt him more to Pay in full and leave them on there as paid 3 years late?  or to Pay for delete and thus essentially giving him no credit history except for my older accounts that were closed as Relationship Terminated?

[Anonymous]

I would rather have a clean CR than just leave them for AAoA.  But in this instance he will have NO credit at all if he got them removed.  If he is no longer AU on your accounts and if he got the OC accounts deleted, he would have no score.  The AU accounts should not even be counting in AAoA anymore.

Paying the CA will not remove the OC account.  You would need to work on that with a GW after paying the CA.

[Saffyreblue]

Thank you for all your advice. 

Do you think it would hurt his credit more to have essentially no credit or to have all these 3 year late paid in fulls?  Which would give him a higher credit score?

[Anonymous]

Paid COs will still be scored as a CO which is still a major derogatory.

I would see if he can get some type of secured card and have it start reporting before trying to delete the other TLs.

[Saffyreblue]

GREAT!  Thank you so much for helping me.  I will work on getting him a secured card.....

I think I'm going to add him to my 2 credit cards as an authorized user too.  Then he should have at least 3 years of "good credit" by the time we are ready to buy the house.