Keepmine, With the settled status and 150-days past due, what are my options for cleaning up my credit? Does it improve after 2 years?
Keepmine, Also they gave me another option -- pay the past due on the account, 0% interest for 2 years, they will reopen the account and list as current paid as agreed but with the 150-day late. Thoughts?
Susanna, Personally, I would choose this option and run. 150 days late doesn't look good on your CR, but it does look a whole lot better than a settlement or chargeoff. And no BK to worry about either. Just make sure you get it in writing. Good luck. Dani
I agree with Dani. If this is doable you can whittle down a lot of debt at 0% interest for 2 years. What would the rate go to after 2 years?
I've been weighing your options for over 2 weeks with you. I've said a few prayers few you a long the way. This is by far your best way out. Take it, and take a month to relieve stress, and then come back to it and start paying in down. Budget the next 24 months or so, taking into account Decembers being small payment months. 2 years at 0% is a great deal... I hope you get it in writing. I had an account with MBNA that was close to a charge off due to college misuse, instead I decided to take the reinstatement offer and pay the card down 70%. It was the smartest thing I've done in my adult life yet. They have been more than willing to help me along the way, even lowering my APR and increasing my limit. ***Just don't miss one payment or they have you...
CuriousGeo, Thank you very much for your advice and the prayers too...This has been very stressful and I am very grateful for the support I've gotten on this board.
I am going to say take the second deal with the 0% for 2 years. I would ensure that you pay the balance on time. Also, MBNA has been one of the hardest companies to dispute info with. They always seem to verify information. Until recently, I redisputed for the 3rd or 4th time my GF's MBNA account, it finally came off. She was only 3k over but she paid it down to 1.6k and now has a complete deletion due to no fault of MBNA and their 100% accuracy policy. Good Luck
The thing that bothers me about this is that to go from "settled" to a 150-day late will cost me an additional $11,000. Why are they so intent on ruining my credit even for full payment? I don't get it...
Susanna, My guess is they want to be certain that you get no more credit for awhile. Their concern is that you be able to pay them and not open new lines of credit that may keep you from fullfilling the new agreement.
It's a good deal. Take it. They can sue you and get it all, and totally trash your credit. This is your way out. When it's over you will have good credit. Keepmine is right (as usual) why should they make you look good at this point? Prove yourself, and things will change, I'm sure.
All of you have been so great helping me. I have been tortured by this decision. And, to add to the drama, they laid off half the people at my husband's new job this week. He could be next...I can't take any more bad news or stress... My worry about MBNA is that once I start paying on the account, they will close it...I recently paid off a United Visa that I had always paid on time, NEVER late. They did a hard inquiry on my cr (saw the MBNA lates & AMEX chargeoff) and a day after the payoff closed my account. With 32 positives on my CR -- one CO & 150 late -- how long till I'm considered a good risk again? Thank you all again...
Susanna, You need to quit worrying about your credit. It's toast for quite awhile. If MBNA closes the account, there is not one thing you can do about it. I would suggest with no job yourself and, your husbands prospects shakey, you don't need anymore credit. All you'll do is dig that hole deeper. I would suggest spend more time looking for work and less time worrying about credit issues. MBNA has made you a heck of a deal. It's up to you if you accept it or not but the determing factor should be, can you make the payments and not how soon can I get more credit.
trust me, MBNA will offer to reopen the account if you pay down the balance. Read my earlier post about my Gf.
Keepmine, Well this is exactly the point -- if my credit is ruined anyway, WHY should I payoff the 20K? Just let the damn thing chargeoff and be done with it. Either way my credit is screwed, so why PAY them 20K for that "pleasure." And, by the way, aren't most people on this board here because they ARE WORRIED about their credit??
Why pay? Because you bought things/services with that MBNA card, which you agreed to pay back. Any interest and penalty fees that are included in the $20K were part of your cardmember agreement, when you got and used the card. In short: you owe the money. Payment for deletion is a great thing *if* you can get it. But, it is foolish to risk a judgement (and, yes, as someone pointed out, they know you have access to the money) just because you don't want a ding on your credit report (which is already there) or just because you don't think they deserve to get their money because they want to tell the TRUTH about your payment history on the credit report. Yeah, a lot of people here try to get accurate stuff off of their report. If it works, fine. But, why trade a 150 day late with a company that can be your best friend in a few years for a judgement that will haunt you indefinitely (esp. if you choose not to pay)? That makes NO sense - and a person doesn't have to work for a collection company or credit card issuer to tell you that. You're about to cut your nose off to spite your face. A good credit report is a reflection of good money management. Don't lose the forest for the trees...
