So I have an old charged off department store card from about 2-3 years ago that was sent to a CA...I haven't heard much from them until recently...I received a letter stating that if I made the payment, they would open up a line of credit for me equal to the amount owed. So, I would get another positive TL and I would think they would delete the negative that is currently on my CR (I would clarify this if I decide to do it...) The only problem is, the original charge off was for around $130 and now the balance is over $300! Anyone else heard of such an offer? Would you accept it?
Oh - I would definitely have to pay the $300...but I think it'd be worth it IF I could get a deletion and the LOC.
It's something that is starting to happen more. This is a fairly small balance, so maybe it's not too bad. You need to see what the interest rate is on the card, though, as they will keep adding interest every month, and you may not make real progress toward paying it off. Also, what is the SOL in your state and when did you make the last payment? Why pay something that is out of SOL?
This is a derivation of the C1 "YOU ARE PRE-APPROVED" con. While it sounds good to have a new card; it doesn't improve your credit report, as much as they like to claim that it will. They don't delete the negative, so you have a positive which only amounts to a fraction of the negative.
