Hi, I just pulled my Credit Report and would like advice on which option is best for resolution of this debt and fast credit score recovery. I have a secured card and a different high interest "bad credit" card both opened 07/09. They are both charged off and are of course negatively impacting my already poor credit score. My question is this: would it be more beneficial to pay off these cards with a possible PFD and start a brand new card with no negative history, or would it be better to negotiate to pay off all debt with the stipulation that my credit cards be reinstated as active and usable, of course having my late payments still on credit record. And how can a secured card be sent to collections? Don't they already have my originally deposited money as back-up if i didn't pay? Thank you.
Negotiate PFDs whenever possible and then start rebuilding positive payment history with a new card. Regarding the secured credit card, if you spent over your deposit and never made payment you can still get sent to collections.
