Need advise - 3 Chase cards with settlement options

[Agen2integra]

I’m a moment where I don’t know what to do and need advice! I had basically gone off the deep end back in the end of 2016. Now I’m trying to clean up what I messed up on. I had three chase credit cards that I walked away from and have just received an invitation to pay off for a fraction of the debt that I incurred. These are all outside the SOL (PA resident) and just want to get thoughts around paying or not. I searched before and came to the consensus that Chase will not PFD. Will Chase ever reconsider me for credit if I pay them the reduced amounts? I seriously doubt they would if I didn’t.

Here’s the info on the cards:

 

original debt $5,025 - C/O 11/2017 - DOFD 09/2015 - last payment 10/2016 - settlement offer $754

 

original debt $5,252 - C/O 11/2017 - DOFD 10/2015 - last payment 10/2016 - settlement offer $788

 

original debt $1,121 - C/O 1/2018 - DOFD 10/2015 - last payment 10/2016 - settlement offer $168

please let me know if this is enough intel or if more is needed. 

 

So far, I’ve made leaps and bounds on my credit right now and was just recently approved for the Amex Gold and BCE. Current myFico scores are Eq 663, Trans 688 and Exp 688. I would like to pay the settlement offers if it doesn’t negatively impact my credit at this point.

Can someone give me the pros and cons?

[IndyPoolPlayer]

Even if you pay the settlement amount, in addition to no PFD, you'll be blacklisted by Chase for an indeterminate length of time due to "Poor performance on previous accounts" even after these accounts fall off your CRAs.

 

DW is still blacklisted by Chase and the accounts in question fell off the CRAs 2 years ago. She settled some Chase cards for less than full balance. Tried to apply for Amazon Prime card and was declined because of "poor performance...." - AA letter stated no pull was done.

Edited May 12, 2020 by IndyPoolPlayer
Clarification

[cv91915]

What is the SOL for credit card debt in your state?

[Agen2integra]

Appears that I may have been wrong.... the SOL is 4 years. Is the SOL from the last payment date or first DOFD? 
 

I thought that I read somewhere that it was 3 years.....

 

I truly would value your opinion. Do you think it would be best to pay it now? If I did pay, does that mean it would continue to report for 7 years after the settlement payment? Should I just wait until after the SOL passes at this point?

[cv91915]

54 minutes ago, Agen2integra said:

does that mean it would continue to report for 7 years after the settlement payment?

I don't have solid answers to your other questions in that post (someone will, though), but negative info like this drops after ~7 years from DOFD.  

[maudie]

Bump, and a question for the hive mind:

 

Is this a situation where OP should worry about the recent AmEx approval if the Chase settlement is made? 
 

Thanks,

 

maudie

[cv91915]

3 hours ago, maudie said:

Bump, and a question for the hive mind:

 

Is this a situation where OP should worry about the recent AmEx approval if the Chase settlement is made? 
 

Thanks,

 

maudie

Need more info.  If you're referring to a post in another thread (or another thread altogether), could you please post a link?

[maudie]

8 hours ago, cv91915 said:

Need more info.  If you're referring to a post in another thread (or another thread altogether), could you please post a link?

Hi cv9195,

 

Yes, I’m referring to the opinion that lenders for open accounts in good standing become skittish when seeing “settled for less than full” on other trade lines. Here is an example.

 

Thanks, maudie

 

PS: It’s my first time linking within a thread, so if it goes someplace other than CB, lmk.

[cv91915]

44 minutes ago, maudie said:

Hi cv9195,

 

Yes, I’m referring to the opinion that lenders for open accounts in good standing become skittish when seeing “settled for less than full” on other trade lines. Here is an example.

 

Thanks, maudie

 

PS: It’s my first time linking within a thread, so if it goes someplace other than CB, lmk.

Link worked.   

 

When something fresh and negative reports, it'll likely be noticed by your other existing creditors upon the next AR soft pull.  

 

... but it's counter-intuitive to me that that an update to an already-negative TL would trigger adverse action.

[CreditCurious20]

A potential con for settlement is that the you will likely receive a 1099-C and may have tax liability on the written off portion of the debt.