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What to do, am I on the right track? SO MANY CHARGE OFFS

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What to do, am I on the right track? SO MANY CHARGE OFFS

Let me begin by saying I was young and stupid and should have never opened these high interest credit cards. That lesson was learned the hard way. I am in the process of repairing my credit. I went to get an auto loan and I figured, I make pretty decent money somebody will approve me with a decent rate. Boy was I wrong. 23% interest rate on an auto loan. I think not.

 

Currenrly I have a Credit Union Secured credit card for $2750 in good standing that needs to be paid off its maxed out it will be a year old in march... A capital one secured master card for 600$ thats paid off opened in september 2022. A self Lender secured Credit card for $550 that is 50% used opened in april 2021. A small personal loan through my local credit union in good standingwith less than 500$ owed on it. i make the payments on time to get the positive payment history reported. I pay my rent on time every month ($1530) and that is reported to the 3 majors monthly as well. My worry is what you'll see below. How long will it take me to recover from all the charge offs? They all pretty much charged off at the end of 2021 and the beginning of 2022. Besides paying them off, what other advice can I get to help me look good in the eyes of financial institutions again? Equifax Tells me my score is a 580 on their direct website. Transunion says the 580. I can not pull experian without paying for it. My FICO says 468Smiley Sad Im just looking for some guidance is all. 

 

This is the progress I've made so far:

 

Credit Collection Services $318 paid in full (old apartment)

LVNV(credit one bank Charge off) settled for 443$

LVNV (Affirm) settled for $700

FingerHut Charge off Paid in full $550

Spring Oaks Capital (Bank of Missouri Destiny Mastercard Charge off) settled for $600

Spring Oaks Capital (Bank of Missouri Indigo Master Card Charge off) Settled for $585

Central Portfolio Control (Fortiva/Aspire Mastercard Charge off) Paid in full $804

 

Here is what I have left:

 

Milestone Master Card Charge off $719

xFinity Mobile Credit Collection Services $1900

Applied Bank Charge Off $656

Bank of Missouri FIT Mastercard Charge off $732

Commenity Bank Ulta Master Card $3358

FB Opp Loans $2563

11 REPLIES 11
Thornton123
New Visitor

Re: What to do, am I on the right track? SO MANY CHARGE OFFS

Is it mandatory you purchase a car right now? Your focus is fixing your credit before anything else. Your credit score of 580 seems pretty much accurate, I believe it is even high with having that much charge off and still collection reporting on your credit.

 

unfortunately the mistake made was not agreeing to a pay for delete when paying those charge offs off, so those charge off will still stay on your credit for a while. Before making anymore payments, ask for a pay for delete agreement.

 

keep in mind any interest quoted to you will be high for awhile, and fixing credit takes time and patience as you will have to allow good payment history to report, inquiries to age, etc. 

i would not advise financing a car, since you make good money- save money and buy cash.

Message 2 of 12

Re: What to do, am I on the right track? SO MANY CHARGE OFFS

 
Message 3 of 12

Re: What to do, am I on the right track? SO MANY CHARGE OFFS

It is not mandatory to buy a new car right this second but by summer time it will be..The collection agencies have removed themselves. Unfortunately The original trade line CO are still there and will not agree to a act of goodwill. I've tried it all. So are we talking 2-3 years keeping things dormant, paid off using what I have responsibly before attempting to even apply for a loan of any sort?

Message 4 of 12
markbeiser
Established Contributor

Re: What to do, am I on the right track? SO MANY CHARGE OFFS

How many of them are charge offs reporting a balance every month, and counting against your revolving utilization?
Those will be a double whammy on your credit report, as they count against both your payment history, and credit utilization, which combined make up 65% of your score.

Those are the ones you should try negotiating with the lender first, ideally getting them to remove the account from your credit report completely, but at the very least, settling the debt will make it stop reporting a balance and stop wrecking your utilization.
Having a history of late payments hurts, but not nearly as much as an active CO reporting, or a collection account.

If any of them have gone to collections, and sold off to a debt collection company, it may be easier to settle for substantially less, since they paid pennies on the dollar, and are easier to get a PFD (pay for delete) with.

Collections and charge offs both hurt your score really bad, but the effect of collections fades more over time, where an actively reporting charge off continuously supresses your score for the full 7 years.

I'm afraid there is no quick fix for this. I had an injury I was not adiquately insured for mid 2015, and was only able to work in a limited capacity for the better part of a year, and I stupidly didn't do a BK.
Ended up in credit jail for most of the time since then, and only started to get out in the past year or so as things aged, then started falling off my report in the past 3 months.
I defaulted on a lot more debt than what you did though, had 3 lawsuites from debt collectors, etc..

I'm much better insured now!

Back to gardening until Late February 2025.

Current FICO8:
Message 5 of 12

Re: What to do, am I on the right track? SO MANY CHARGE OFFS

Finger hut ruined me. I just paid them directly in full. The account is almost 7 years old so thankfully that will be ruined. There is 2 other accounts I settled that are actively reporting charge offs but once they are shown paid in full won't that help a little?

Message 6 of 12
citymunky
Frequent Contributor

Re: What to do, am I on the right track? SO MANY CHARGE OFFS

@StressedMillennial94 you can pull your Fico 8 Experian score for free, if you download their app.

Rebuilding since 2021


Closed CCs
USAA (Jul 2019| Settled CO), Jasper (Jul21-Jul 2022), Sable {Secured} (Jan22-Jun23), CreditOne Platinum (Jul21-Aug23)

Starting FICO 8 Scores:
Current FICO 8 Scores:

Message 7 of 12

Re: What to do, am I on the right track? SO MANY CHARGE OFFS

I did. 468....

Message 8 of 12
OmarGB9
Community Leader
Super Contributor

Re: What to do, am I on the right track? SO MANY CHARGE OFFS

So, while @Thornton123 is on the right track about always trying to negotiate a PFD prior to paying, that usually only works with collection agencies (CAs), not original creditors (OCs) as you found out. 

 

Unfortunately all you can really do is pay/settle all of your remaining charge offs and just let time do its thing. They'll all fall off eventually at about the 7 year mark from DOFD (Date of First Delinquency, or when the account first went delinquent and never became current again, aka first missed payment that led to charge off).

 

468 sounds accurate for multiple charge offs unfortunately. BTW, Equifax offers some proprietary score that isn't used by major lenders, and TransUnion offers Vantage 3.0 scores which also isn't used by major lenders, so you can pretty much ignore both of their scores. 

 

May I ask how you got so many charge offs if you make pretty good money? Were they acquired prior to getting this job? Not looking to judge, simply to understand. 


Last App: 1/10/2023
Penfed Gold Visa Card

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 9 of 12

Re: What to do, am I on the right track? SO MANY CHARGE OFFS

Hi yes CO were aquired  to getting this new job. 


@OmarGB9 wrote:

So, while @Thornton123 is on the right track about always trying to negotiate a PFD prior to paying, that usually only works with collection agencies (CAs), not original creditors (OCs) as you found out. 

 

Unfortunately all you can really do is pay/settle all of your remaining charge offs and just let time do its thing. They'll all fall off eventually at about the 7 year mark from DOFD (Date of First Delinquency, or when the account first went delinquent and never became current again, aka first missed payment that led to charge off).

 

468 sounds accurate for multiple charge offs unfortunately. BTW, Equifax offers some proprietary score that isn't used by major lenders, and TransUnion offers Vantage 3.0 scores which also isn't used by major lenders, so you can pretty much ignore both of their scores. 

 

May I ask how you got so many charge offs if you make pretty good money? Were they acquired prior to getting this job? Not looking to judge, simply to understand. 


 

Message 10 of 12
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