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Ok gang.. I need advice here


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In the processing of rebuilding my (our) credit.

 

Current FICO 8 is 545. Yeah.. sucks. Big time.

 

But, the good news is that I started the long game last June, I got two secured credit cards

 

One with a 1,000 CL, and another with 500 CL. Also got an unsecured card for $300.00

 

All have been paid on time, closing in on a year. So that's helping.

 

Got a car loan started in Jan of this year, all payments made on time

 

What's killing me is the collection accounts. I've been going through them and offering PFD. I started with 8 collection accounts, and now down to 5. However... the one I have a question on is an old Discover card account that I had.

 

Here's what it shows on my report:

 

Account Type
Credit Card - Revolving Terms
Date Opened
Aug 1, 2013
Account Status
Closed
Payment Status
Charge-off
Status Updated
Aug 1, 2016
Usage
358%
Balance
$1,790
Balance Updated
Apr 22, 2018
Credit Limit
$500
Monthly Payment
-
Past Due Amount
$1,790
Highest Balance
-
Terms
Revolving
Responsibility
Individual

 

 

So, essentially Discover has charged this of. So as I understand it, a couple of things are happening right now.

 

1- It's showing as an open collection and charge off. Obviously that's bad... they are continuing to report it every month as an FP (Failure to pay)

2-It's affecting my util on CC's since it's showing 358% of my balance.

 

I have the money to pay it off, that's not the problem. What's making my hesitate is the date of last activity is "Status Updated 2016" What will happen if I call in and pay this off? I'll ask for a PFD, but let's assume they won't do that. They take the money, update the balance to zero. Then update the status to "Closed, paid"? Or something like that.

 

I want to meet my obligations here. But I want to be smart about it. Ideas? Suggestions?

 

Goal is to get credit up over 675 by years end, and I think getting Utilization down is one of the big factors. And this one is screwing up my numbers.

Thanks

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In the processing of rebuilding my (our) credit.

 

Current FICO 8 is 545. Yeah.. sucks. Big time.

 

But, the good news is that I started the long game last June, I got two secured credit cards

 

One with a 1,000 CL, and another with 500 CL. Also got an unsecured card for $300.00

 

All have been paid on time, closing in on a year. So that's helping.

 

Got a car loan started in Jan of this year, all payments made on time

 

What's killing me is the collection accounts. I've been going through them and offering PFD. I started with 8 collection accounts, and now down to 5. However... the one I have a question on is an old Discover card account that I had.

 

Here's what it shows on my report:

 

Account Type
Credit Card - Revolving Terms
Date Opened
Aug 1, 2013
Account Status
Closed
Payment Status
Charge-off
Status Updated
Aug 1, 2016
Usage
358%
Balance
$1,790
Balance Updated
Apr 22, 2018
Credit Limit
$500
Monthly Payment
-
Past Due Amount
$1,790
Highest Balance
-
Terms
Revolving
Responsibility
Individual

 

 

So, essentially Discover has charged this of. So as I understand it, a couple of things are happening right now.

 

1- It's showing as an open collection and charge off. Obviously that's bad... they are continuing to report it every month as an FP (Failure to pay)

2-It's affecting my util on CC's since it's showing 358% of my balance.

 

I have the money to pay it off, that's not the problem. What's making my hesitate is the date of last activity is "Status Updated 2016" What will happen if I call in and pay this off? I'll ask for a PFD, but let's assume they won't do that. They take the money, update the balance to zero. Then update the status to "Closed, paid"? Or something like that.

 

I want to meet my obligations here. But I want to be smart about it. Ideas? Suggestions?

 

Goal is to get credit up over 675 by years end, and I think getting Utilization down is one of the big factors. And this one is screwing up my numbers.

Thanks

 

Discover doesn't do PFDs, but they do sue. I'd make arrangements to pay it. I doubt you'll be able to dispute it off, but maybe someone else has had a better experience than that. This info is based on what I've seen Discover do with others.

 

I went through the big credit crunch of 2007, and Discover was good to me. When other cards were cutting my limits, Discover and AmEx did not. They can be hard to deal with though if you default.

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In the processing of rebuilding my (our) credit.

 

Current FICO 8 is 545. Yeah.. sucks. Big time.

 

But, the good news is that I started the long game last June, I got two secured credit cards

 

One with a 1,000 CL, and another with 500 CL. Also got an unsecured card for $300.00

 

All have been paid on time, closing in on a year. So that's helping.

 

Got a car loan started in Jan of this year, all payments made on time

 

What's killing me is the collection accounts. I've been going through them and offering PFD. I started with 8 collection accounts, and now down to 5. However... the one I have a question on is an old Discover card account that I had.

 

Here's what it shows on my report:

 

Account Type
Credit Card - Revolving Terms
Date Opened
Aug 1, 2013
Account Status
Closed
Payment Status
Charge-off
Status Updated
Aug 1, 2016
Usage
358%
Balance
$1,790
Balance Updated
Apr 22, 2018
Credit Limit
$500
Monthly Payment
-
Past Due Amount
$1,790
Highest Balance
-
Terms
Revolving
Responsibility
Individual

 

 

So, essentially Discover has charged this of. So as I understand it, a couple of things are happening right now.

 

1- It's showing as an open collection and charge off. Obviously that's bad... they are continuing to report it every month as an FP (Failure to pay)

2-It's affecting my util on CC's since it's showing 358% of my balance.

 

I have the money to pay it off, that's not the problem. What's making my hesitate is the date of last activity is "Status Updated 2016" What will happen if I call in and pay this off? I'll ask for a PFD, but let's assume they won't do that. They take the money, update the balance to zero. Then update the status to "Closed, paid"? Or something like that.

 

I want to meet my obligations here. But I want to be smart about it. Ideas? Suggestions?

 

Goal is to get credit up over 675 by years end, and I think getting Utilization down is one of the big factors. And this one is screwing up my numbers.

Thanks

 

Discover doesn't do PFDs, but they do sue. I'd make arrangements to pay it. I doubt you'll be able to dispute it off, but maybe someone else has had a better experience than that. This info is based on what I've seen Discover do with others.

 

I went through the big credit crunch of 2007, and Discover was good to me. When other cards were cutting my limits, Discover and AmEx did not. They can be hard to deal with though if you default.

 

Good intel, thanks. I guess the question is.. what will this do to my score if I contact them and pay this off?

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There's no way to know for sure. Predicting how a score will change with a particular action is really iffy. Even if it goes down for now, it will go up eventually, as you deal with the problems one at a time. Time is your ally. :)

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My aunt settled a similar age and amount discover card for 30% directly through discover in response to a 50% letter they sent and while they didnt remove the trade entirely they removed all of the charge off history with no date and charge off now shows was 120-149 days late instead which might have been slightly better. Shows the 30,60,90,120 then no data vs 30,60,90,120,150,CO,CO,CO,CO,CO,CO,CO,CO,CO...

Edited by haydeno
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120DL isn't any better than CO. Anything 90DL or above is the same.

 

But OP if they are reporting every month then that status date is meaningless. It's like a fresh late every single month.

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My opinion is that settling the account (or paying in full) shouldn't have any meaningful impact on your credit score. There a very good chance that the "Balance Updated" date is keeping this scored as a fresh delinquency, and settlement won't represent a downgrade in that factor. Instead, with time, the account should eventually score as an older adverse tradeline.

 

There's a chance you'll see a reporting shift comparable to haydeno's mother and may possibly come out better for it. (Again, my expectation is that the her reporting change made little difference in credit score, with reasoning along lines that shifter notes.)

 

The important thing I want to underscore is that settling won't impact the recorded "date of first delinquency", which determines when the adverse account will drop from your report. The charge off status date appears to be Aug 1 '16, in which case your DOFD is approximately Feb 1 '16. You should look for this account to be removed in early 2023.

 

My recommendation is to strike the best settlement that you can and put this delinquency behind you.

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My opinion is that settling the account (or paying in full) shouldn't have any meaningful impact on your credit score. There a very good chance that the "Balance Updated" date is keeping this scored as a fresh delinquency, and settlement won't represent a downgrade in that factor. Instead, with time, the account should eventually score as an older adverse tradeline.

 

There's a chance you'll see a reporting shift comparable to haydeno's mother and may possibly come out better for it. (Again, my expectation is that the her reporting change made little difference in credit score, with reasoning along lines that shifter notes.)

 

The important thing I want to underscore is that settling won't impact the recorded "date of first delinquency", which determines when the adverse account will drop from your report. The charge off status date appears to be Aug 1 '16, in which case your DOFD is approximately Feb 1 '16. You should look for this account to be removed in early 2023.

 

My recommendation is to strike the best settlement that you can and put this delinquency behind you.

Thanks

 

I think that's good advice. I would feel better just having it paid and out of my life.

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If you don't mind posting the other four collections, we may be able to help you with those as well. (with dates/etc just like you did)

Yeah.. Good call. Here's the others.

 

CREDIT COLLECTION SERV

XXXXXXX

PROGRESSIVE

Dec 1, 2013

$587

$587

725 CANTON ST
NORWOOD, MA 02062

 

 

CREDIT COLLECTION SERV

XXXXXXX

ESURANCE AN ALLSTATE COMPANY

Jun 1, 2017

$618

$618

725 CANTON ST
NORWOOD, MA 02062

 

PORTFOLIO RECOV ASSOC

XXXXXXXXXXXXXXX

CAPITAL ONE BANK USA N.A.

Jan 1, 2017

-

-

120 CORPORATE BLVD STE 1
NORFOLK, VA 23502

CBE GROUP

XXXXX

INTERMOUNTAIN HEALTHCARE Jun 1, 2017

$1,905

$1,905

1309 TECHNOLOGY PKWY
CEDAR FALLS, IA 50613

 

 

That's it.

 

I've poked around a little and from everything I have read, the two insurance once *should* delete after I pay them. Anyone have experience with Credit Collection Service that can verify this?

 

Portfolio recovery I'm not sure. I haven't looked at that one, and frankly don't even have the balance (pretty small I think) just something that was ignored.

 

Any advice on plan of attack her would be awesome!

 

Thanks

Edited by westcoastguy
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Portfolio is a debt buyer, you must have had a credit card with Cap One that went into default and they sold it to PRA. You don't have a lot of leverage against them on that one because there is no arbitration in Cap's agreements. However, PRA is more likely to take a small settlement since they only pay around 3-4 cents on the dollar for this junk they buy.

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The last post in this topic was posted 1074 days ago. 

 

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