Ok I got this arrangement with Midland Credit where they turn my charge off into a trade line like a credit card. According to them they take the original entry of a charge off give it a zero balance and put a new entry which is the trade line/credit card line. If anyone has heard of this or knows of this, I would love to hear some opinions.
That will kill your score. First, a chargeoff with a zero balance is just as bad as a chargeoff with 10,000 balance as far as scores go. Then they will add another tradeline under their name, which will automatically be considered a collection acct. No good. Fight them. Make them delete everything. BTW, they are just b.s ing you. Once it's pd. the oc will change it to a charge off with a zero balance. They they will add a collection acct showing paid in full. They aren't doing anything that they don't normally do.
Hi, I am not going to beat a dead horse to death but: I would only do it if it is the ONLY way you can get credit. I did not accept the offer from them, and a couple of months later, it showed up on my credit report as a new charge-off. My debt was way past the statue of limitations. People here will tell you it is a good choice if you need credit, and it is the only way to get it. I wish you luck........ I forgot to add, I had to dispute it to get it off.
I don't think this is the offer for a credit card that can be used when paid. This is just a ca putting more b.s derogs on a report. Those credit card offers are from Cap 1 and the Credit Store. Are you saying that Midland Credit offered you a credit card?
I recently disputed a 6 year old Diamond Shamrock account, and got it deleted. 3 days ago I got this offer: Midland Credit Management, in cooperation with Capital One is pleased to give you the opportunity to put your old debt to rest, and put your old card debt on a new card that will be serviced by capital one. (This is for a VERY OLD Diamond Shamrock card). Your card will be serviced by Capital One (blah blah)..... And, at the bottom of the page, it has 'this debt is past the stage where litigation is necessary, but we are assured that you wish to clear up this matter'. The return address is: Midland Credit Management New Accounts -COF P.O Box 939019 San Diego CA 92193 On the form to send back, it looks like an ordinary application that has been pre-filled, except my SSN. It seems like the same address where they are located, except the COF is in the return address. I am now gonna watch my Transunion report, because I am betting that it will show up as a new charge-off ;-(
Thanks for the replies. When I was talking to the lady, I was getting technical with her and she said that she does not know exactly but to definitely call back and talk to someone who really knows the exact process. She was very nice and helpful which is very rare in the CA world. So basically what I should really ask for is to have the Midland derogs deleted or else the deal is off. Supposedely the new "tradeline" is just like a credit card line so it is supposed to help me build credit. Really does not matter cause I have open accounts with good payment history.
If the credit card is reported by cap 1 as only a credit card, then I don't think it could hurt you. But, I would still want the oc and ca deleted. Get any agreements in writing before you commit to it.
Midland Credit (which is a CA) is really Capital One? I mean I know they have a relationship where Cap One does that fake credit card by buying up the charge off.
I re-read (I think I spelled it right), the offer again, and it seems as if they are 2 different companies. I think Midland does this for/with Capital One. I am sorry if my post seems confusing, but I think they are 2 companies.
