I am beginning the process of trying to repair my credit and would love some advice from people who have been through this before. Back in 1997, my financial aid got lost and I ended up bouncing a bunch of checks and having one credit card charged off. I took care of everything that I could find, but I know there has to be some old outstanding things on my credit report (I applied for a credit card and was denied). Since that, I have requested copies of my credit reports from all three bureaus which I haven't received yet. The good news is that I am current on my only other credit card I had at the time (major bank credit card) and current on my student loan payments (no late payments on either according to their websites). In reading some of the posts on this message board and others, I am concerned about trying to deal with ca's and the charge off. Someone told me that the charge off will remain on my credit history for 7 years after the date of payment. If this is correct, why should I bother paying it (except out of moral conscience). Any advice would be appreciated. Thanks in advance for all of your help.
Some creditors will remove the negative from your credit report if you settle. It is not easy and some may not do it. If you read this board long enough, you will see how it is done. If they will, it may be worth it to you to pay it off. One rule you will learn here is do not do it unless you get the promise in writing. They will promise you anything verbally to get your money, but will seldom follow through. You may want to explore the possibility of paying off part of the debt in return for a deletion from your credit reports of all negatives.
Good Luck in your journery. Your best bet is to pay the debt by in exchange for a lower amount and CRA deletion. In the six or seventh year it can be sold to another agency who might attempt to re-age it. One a debt is paid it is less likey to come back to haunt you and it a little bit easier to get off the records. Trust me I have been through it.
Can you share with us who the credit card was with that was charged off? Some of the people here can probably tell you if they will give you a deletion in return for payment and if they will reduce the total amount owed. When you get your credit reports, give us some specifics and some of the people here can give you some guidance.
A charge off/collection can only stay on your credit report 7 years from the charge off date. It does not matter if you pay it or not.
Tom, The company was Chase. It was one of those student cards (where you send in your student ID). It had a miniscule balance at the time it was cancelled. ($200)
I have no experience with Chase. Can anyone help? How will they react to an offer to settle with a deletion?
