Time to face it......the long road back

[welshdan]

Oh thanks for the link and number I will try them tomorrow.

Fico 8 Experian is showing 630.

[welshdan]

March 30th update

Fico8 Score 632 (up 2 points compared to Feb 28th)

All trace of my citibank and capital one charged off accounts have been 100% removed from my credit report. Staggering!

Just got that 12k with BofA to tackle. Will try and give them a call today.

[welshdan]

Ok finally got through to BofA.

Lowest they can do is around 60% of the balance.

CC1 = $6530 = $4000 = 61%

CC2 = $5937 = $3600 = 60%

Total of $7400 paid against balance of $12400

They also offered to spread the settlement amounts across 24 months which i thought was generous but doesnt really help me bounce back until 24 months from now.

However It was a good phone call and I suppose I need to decide what I can afford and what I'm willing to sacrifice now to do it. I'm desperate to have these accounts paid up and to start recovering.

Realistically speaking i'm probably to leave it a few days, maybe a week and go back in with 30% offer and accept anything below 45% as I think I can swing that. They may stand firm and say no but worth a shot.

Any words of wisdom?

[gdale6]

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@welshdan wrote:

Ok finally got through to BofA.

Lowest they can do is around 60% of the balance.

CC1 = $6530 = $4000 = 61%

CC2 = $5937 = $3600 = 60%

Total of $7400 paid against balance of $12400

They also offered to spread the settlement amounts across 24 months which i thought was generous but doesnt really help me bounce back until 24 months from now.

However It was a good phone call and I suppose I need to decide what I can afford and what I'm willing to sacrifice now to do it. I'm desperate to have these accounts paid up and to start recovering.

Realistically speaking i'm probably to leave it a few days, maybe a week and go back in with 30% offer and accept anything below 45% as I think I can swing that. They may stand firm and say no but worth a shot.

Any words of wisdom?

---

If these are still within states SOL then that is a generous offer, if not you may have to pay that amount or wait for it to drop off then settle for a much lesser amount. You can try a counter offer but only do so with what you can actually pay. You dont want payments on this you want them updated to 0 balance as quick as possible to it can cease reporting. COed accounts once they are paid off to 0 are to stop reporting per CRA rules.

[welshdan]

Thank you for your feedback. They were charged off in June 2020 so well within Floridas SOL.

I'll crunch my numbers and go back in with what I can realistically pay to settle and see if they agree.

[welshdan]

Just called them back today and we agreed on 55% settlement for the 12.5k I owed them. As you said @gdale6 it was generous and that is the final piece to my credit jigsaw. 

I'm excited for the score rebound I'll see over the next 12 months but more importantly I've got a new job opportunity that would be impossible with active collections or charge offs so once these update, things are looking up!

[donkort]

You should get the FICO 5, 4, and 2 Mortgage scores if you can afford it, since you are seeking a house. 

Generally, the minimum middle FICO score for a conventional mortgage is 620. It's much better, of course, if your score is higher. 

They have those scores at MyFICO.

[welshdan]

Thanks @donkort for the advice.

One thing to note, my citibank settlement is still showing on equifax as 90 days late with a balance of 9k. I settled on that in January.

Should I submit a dispute to equifax get that updated?

[donkort]

Especially if you have written documentation of this--yes.

[alloveragain3boys]

Only way to go is up now! Keep us posted on your progress