For one, getting your current credit cards paid down to where only one has a small balance will help you quite a bit to optimize your score. 35% of your score is credit utilization. The other posters have given good advice on how to settle the collection and the charge-off.
I definitely agree that you should settle with Portfolio first. Get the agreement in writing and make sure it mentions that the acount will be deleted before you agree to pay or schedule any payments. Also, do you see the original account this is associated with and the Prtofolio collection on your credit reports? If so, you might need to dispute the original trade line if it is reporting a balance or another inaccuracy.
As for Bank of America, it is my undertsanding that they do not do pay for delete. I recently settled a lawsuit with them for a charged-off credit card. I asked my lawyer to negotiate for it, but their attorney said they never do it under any circumstance. This is just my experience. For BofA, I would expect that you need at least 40% to settle the account.
@RehabbingANDBlabbing wrote:For one, getting your current credit cards paid down to where only one has a small balance will help you quite a bit to optimize your score. 35% of your score is credit utilization. The other posters have given good advice on how to settle the collection and the charge-off.
I definitely agree that you should settle with Portfolio first. Get the agreement in writing and make sure it mentions that the acount will be deleted before you agree to pay or schedule any payments. Also, do you see the original account this is associated with and the Prtofolio collection on your credit reports? If so, you might need to dispute the original trade line if it is reporting a balance or another inaccuracy.
As for Bank of America, it is my undertsanding that they do not do pay for delete. I recently settled a lawsuit with them for a charged-off credit card. I asked my lawyer to negotiate for it, but their attorney said they never do it under any circumstance. This is just my experience. For BofA, I would expect that you need at least 40% to settle the account.
Portfolio will not send a letter with a PFD agreement. They have a contract that they break by deleting collections against CRA's guidlines.
It is listed on how they delete on their website:
"Your account will be considered paid-in-full or paid-in-full for less than the full balance after your final payment is successfully posted. Within approximately 30 days of your final payment successfully posting, we will request the credit reporting agencies delete the PRA tradeline related to your account from your credit bureau report."
Are you within the statute of limitations on this? If past SOL, start lower. If within SOL be very carefull and be ready to defend yourself or pay more in case this get's them riled up. If you approach them, do it verbally and state that you can likely borrow $X from a family member to settle this... If within SOL, you do not want them thinking you have a wad of cash that they can go after legally and that you are desperate.
@Anonymous wrote:
Thank you so much for the quick replies, you guys seem very knowledgeable!
I believe PRA is past the SOL since all the letters I have received from them state that they cannot sue me on the debt. Should I email them with my offer or do it over the phone ? If that makes a difference the original capital one account is not listed on my credit report so I believe once PRA is settled it should be completely off my report.
Also as I suspected it does not seem to be possible to remove the boA account but would it be helpful to have that collection paid to zero ?
Thank you so much !
You could email, though over the phone works just fine. I can tell you first-hand that's fine. I've done a few settlements with PRA this way. Yes, once it is settled it's like the account never existed.
Correct, paying it to zero will lower util usage and update the balance to zero, and then it can begin aging.
@OmarGB9 wrote:
@Anonymous wrote:
Thank you so much for the quick replies, you guys seem very knowledgeable!
I believe PRA is past the SOL since all the letters I have received from them state that they cannot sue me on the debt. Should I email them with my offer or do it over the phone ? If that makes a difference the original capital one account is not listed on my credit report so I believe once PRA is settled it should be completely off my report.
Also as I suspected it does not seem to be possible to remove the boA account but would it be helpful to have that collection paid to zero ?
Thank you so much !You could email, though over the phone works just fine. I can tell you first-hand that's fine. I've done a few settlements with PRA this way. Yes, once it is settled it's like the account never existed.
Correct, paying it to zero will lower util usage and update the balance to zero, and then it can begin aging.
Collection accounts aren't part of util. Only if the OC is listing a CO balance. Since @Anonymous posted Cap1 isnt on their report. Theres no balance to figure into util.