What exactly does this mean?

Discussion in 'Credit Talk' started by Lori, Apr 25, 2000.

  1. Lori

    Lori Guest

    My fiance and I are getting married next June and we ordered copies of our credit reports to see exactly what kind of problems we will encounter when looking for a house. His report is horrible. My question: On one of his credit cards it says charged off to bad debt. What does this mean? Why have they not tried to contact him? He recieves no bills for this card and hasn't within the last two years. Does it mean the credit company went to a collection agency? or just wrote him off figuring he would never pay? The amount is $2200. any explanations would be great.
  2. Butthead

    Butthead Guest

    RE: What exactly does this mea

    uh...........it means you're a dumbass??????????...uh huh huh huh..he uh huh
  3. BOB

    BOB Guest

    RE: What exactly does this mea

    The school Janitor speak again, cut name
    Butthead, does that mean his brains are in his butt, and he cleans the head?
  4. John Debto

    John Debto Guest

    RE: What exactly does this mea

    It means he didn't pay a credit card debt and his credit is therefore in very bad shape. Do bad debtors make bad husbands as well? Money is not always character, but it sure can be.
  5. Brooke

    Brooke Guest

    RE: What exactly does this mea

    1) How old is the debt? This is going to be a determining factor in what you should do. If the debt is very old and hasn't been paid on for a a certain number of years, for instance, it might drop off the report before you apply for the mortgage.

    2) Depending on 1), it is extremely likely that the mortgage lender is going to have you pay off the debt before a mortgage will be granted anyway, and if you aren't going to be shopping for a house for over a year, it will be better to have a paid charge-off a year before than it will be to have a paid charge-off in the immediate past. You still will have to pay a high rate on your mortgage even with a paid charge-off (and that paid charge-off is going to be on the report for another 7 years).
  6. J. Edgar

    J. Edgar Well-Known Member

    RE: What exactly does this mea

    If the debt is approaching 7 years old, you might as well wait until it falls off the report, although beware as sometimes creditors re-report ancient charge-offs as 'new' or sell them for pennies on the dollar to collection agencies who will try to report the debt as 'new'. You should check the staute of limitation for your state for the type of debt it is to see if it's still even legally collectable.

    If you are going to pay off the charged off debt, make an offer to them that includes removing the item completely from all 3 credit bureaus' files. There is nothing illegal nor unethical about this. Creditors are NOT legally required to report anything to credit bureaus. Don't let them give you any crap about this being 'illegal' or agains the 'credit bureau's rules'. It's completely up to them.

    I'm virtually certain that want the money far more than they want to report the bad debt to the bureaus. If it's already charged off, it's found money to them and goes right to the bottom line.

    Get it in writing before you send them anything at all. The best thing is to pay it all off at once. Creating an installment plan will just allow them to put another trade line onto your report and 'reopen' the bad debt through 'recent activity.'
  7. buzzweiser

    buzzweiser Guest

    RE: What exactly does this mea

    "Butthead" with that rectal cranial inversion you got going on lets call you head up your butt!!!!
  8. Donna

    Donna Well-Known Member

    RE: What exactly does this mea

    You won't necessarily have a high interest rate. I had paid charge-offs in 1996 (which possibly would have fallen off in 1997) and applied for a mortgage in 1997. I received a 7.75% interest rate. I had no current credit at the time, only the 5 paid charge offs. But as always - paid looks better than unpaid.

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