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charged off or collection?

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hoang817
Regular Contributor

charged off or collection?

Hello all,

 

I would like to know whether i should make a payment plans for changed off accounts or wait for them to go into collections and make payments on my own? which one is better  for my credit scores? thank you

2024| EX: 650 TU: 650 EQ: 650
Avant: 500 | Surge: 500 | AMEX Platinum | AMEX Gold
Message 1 of 6
5 REPLIES 5
cashorcharge
Community Leader
Super Contributor

Re: charged off or collection?

Negative dings aren't fun and sounds this is going to hit you soon if it hasn't already

I would say to act sooner than later and if possible to work with the lender before it goes to a collection agency as they will likely be easier to work with

Message 2 of 6
OmarGB9
Community Leader
Super Contributor

Re: charged off or collection?

I'd take care of it now before it's sold to a CA, because then you'll take a double-whammy hit of negatives, as the original CO will still show, PLUS then you'd have a collection showing as well for the same account(s).


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 3 of 6
OniStringer
Regular Contributor

Re: charged off or collection?

Definitely settle it or pay it in full before it goes to CA. Collections are a nightmare, Charge offs are workable. At least in my personal experience.

Started with LOW 500s - Actively rebuilding as of early 2019
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Message 4 of 6
hoang817
Regular Contributor

Re: charged off or collection?

lets say if it went to collection and paid them off.. how long the original credits will stay on my credit report?

2024| EX: 650 TU: 650 EQ: 650
Avant: 500 | Surge: 500 | AMEX Platinum | AMEX Gold
Message 5 of 6
OmarGB9
Community Leader
Super Contributor

Re: charged off or collection?


@hoang817 wrote:

lets say if it went to collection and paid them off.. how long the original credits will stay on my credit report?


Unless the collection agency deleted their TL, both it and the original account will remain on your reports for up to 7.5 years from DOFD (Date of First Delinquency, or when the account first went delinquent and never became current again).


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 6 of 6
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