Off the bat...this is going to be a long post. My name is Travis, and I have bad credit. My credit scores range from 580 (Equifax) to 620 (TU and EXP). I got these scores from myFICO.com. I have 3 charge-offs with credit card companies that are from 2-3 years old. The companies are HSBC, WFFNB and Credit One Bank. I also have collections accounts, but they are in the process of being removed via Debt Validation (CM, RRR). I'm looking to buy a house in around a year and I know that the charge offs are going to do a number on my APR/Loan Approval. I hear that some lenders won't even let me get a loan until the charge offs are paid off. I guess my question is, where do I go from here? The charge offs are for $500, $1000 and $1200. Do the Banks (original creditors) accept a partial payment for deletion? If so, how much should I expect to offer? If not, I've seen a debt validation letter to be sent to the original creditor from the "Sample Letters" section... But what is my next step assuming they don't reply? I've disputed the accounts with all three credit bureaus (CM, RRR) and they have all been validated. I've sent a MOV letter to all three of them and just received a form letter from TU today (...procedure for invesitigation disputed information is to contact, by mail, electronics means or telephone...) I guess my main question is, where do I go from here? Thanks in advance, and based on all the lurking I've done this site seems to be a blessing. -Travis
With those creditors, you have little to no chance of deletion either through disputing them through the credit reporting agencies or directly with a FACTA request. They will not accept payment in consideration of deletion. That said, the best thing you can do is to dispute them, hope for the best and if that fails, "settle" them. At least they won't sell them off or continue to report them as charge offs every month. It probably won't help you in terms of scores initially but, it will prevent them from mitigating increases in the future.
All of the charge offs show a balance of "$0", CAN they continue to sell them off? The collections accounts I am disputing are based on the original charge offs. All of them have come off except a recent one from "Security Credit Services", which I'm assuming bought the account from RJM after I sent them a DV letter. At this point is it worth it to offer some sort of payment to the OC's to mark the charge off as "settled"? I've read that this can impact my score negatively... TIA.
