I have read multiple reports as to the best ways to remove charge offs and find conflicting information. I have a medium risk credit score and what seems to have the most negative impact on it now is a charge off on a account that I did not know they were going to charge off. It happened almost three years ago but at the time I didn't think about the possibility of needing credit in the future. Now I am looking into purchasing a house and really need it removed. Since the SOL in my state is 4 years and I need to resolve this before then I seem to find that the best way to resolve this would be to call the OC and request that they settle the account for a portion of what is owed in return they must remove the negative reporting to all agencies? Will this make a significant increase on my credit withing the next 90 days.
There is nothing else on the credit report so as far as I can tell yes. How else could I find out without contacting the OC?
It surprises me that the the OC would still be hanging onto this in house after 3 years. But if you haven't been contacted by a CA and there isn't a collection on your credit reports, then I guess it may still be with them. If this is the only negative mark on your reports, then yes- removing it should result in a big credit score jump. Of course, convincing the OC to remove the charge off completely in return for full payment would be the optimal solution. That may be difficult to do, depending upon who the OC is. Whatever you do, make sure you get any agreement in writing before cutting a check.
The OC is BOA and I just don't want to stir things up if I don't have to since no one has contacted me in years. I have another item on there for IC systems and it is showing paid years before this one was CO. I have no idea what that is for but I am afraid if I dispute it then they will provide proof and say that I still owe them. Right now I think I would get approved with a score of 635 but I would really like to get better if I can and don't want to risk potentially lowering my score any more. Also I have read that if you have a charge off you can not qualify for certain types of loans?
There are certainly lenders that won't approve home/auto loans if you have any type of charge off listed on your credit reports. There are others who may look at other factors (income, assets) and still move forward after asking for an explanation about why the charge off happened. BOA is horrible to deal with in my opinion, on all fronts, and from what I've heard they're not too helpful when it comes to removing charge offs in return for payment.
Seems to me if they still show a balance, they have not given up. But I really dont know? I had some chargeoffs on some non-recourse mortgage loans, but they zero's out the balances right away..legally they cannot come after me so that was the right thing to do. My loans were all with B of A so I was actually surprised they did it right!!
I just chimed in and I'm having a similar problem with a different creditor. Just so I understand, it seems as though the consences here is to call (not write) the original creditor and offer to pay them a settlement in return for removing the charge off, right? If they no longer hold the account and can't speak about it, then what? What if I can't afford to pay a settlement at the moment?
I actually recommend writing, not calling. And if the account has already been charged off and sold, then you'll need to deal directly with the CA. Have you been contacted by one at all yet?
Just be careful, a lot of times offering a settlement will reset the SOL. So if you don't intend to go through with it, don't reach out.
Or get a credit repair company that is worthy to do it for you. Credit MRI is great and I recommend asking for Stephen when you call. They didn't charge me until they got my chargeoffs off my credit.
I agree, if the original creditor still has the account, before offering a settlement or any type of payment, get it in writing before you send them anything. As far as credit and getting a mortgage is concerned, if your middle score is 620+ and there are no outstanding negatives on your report you should be fine.
Yes, I have been contacted by the CA. I just sent out all of my dept validation letters certified mail. I believe I attempted the "1, 2 punch." So, I'm just going to wait for responses then I'll take the next step.
