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Settled accounts


coach1106
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I need some advice I want to repair my Credit I recently have settled (6 months ago) with two credit card companies My credit score has dropped from 743 to 646, How do I go about removing these items and getting my score back up or is this a lost cause.

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Yes. That is one of the risks you take when you pay accounts that have been charged off or are in collections. We warn people about this all of the time, but many times they don't listen, and come here several months later wanting to know how to fix it.

To the OP- in order to help you, we need more details. It may be possible to fix, but without more information, we can't help you.

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Well the Credit settlement company I used said my credit would go back to normal after six months. I guess they will tell you anything to get your money Here is my deal.. I settled with MBNA in July the account says settled and closed. I settled with Gordons jewlers in Jul also. Paid the settlement in full, but my credit report says I still have a charge off. I called the credit settlement company I used and they said that the charge off would be taken off within 4 to 6 months.. Is this true?? If so will that raise my credit score???

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Read any of the posts on this board about PFD, or Pay for Deletion. Its better to have them promise to take thier items off of your report in order to get paid. Win-win situations before you actually give them the money. Once you give them the money your bargaining chip is all but tossed out the window, they got your money why do they care about you anymore?

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It will be listed as a paid chargeoff, most likely. Those don't hurt your score very much after about 6 to 12 months. Since you paid in full you can ask them to change the status to just "Paid" which is a neutral flag, neither positive nor negative.

If you "settle for less than full balance" it will still count as a chargeoff for scoring because the lender still has to write off part of the debt.

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Reagardless of what section it is in, one of my reports (TU) had a paid collection on it, and I saw an 80 point jump in FICO (not FAKO) when it deleted 2 years ago. That same paid collection still appears on my EQ and EX. Those 2 are 65 FICO points less than TU, with that paid CO being the only real difference. That paid CO is now 6 years old.

My number one negative reason under FICO:

You have 1 collections assigned. Approximately 14% of the U.S. population has a collection on their credit report. Click here to review your Negative Items.

The score evaluates whenever there is derogatory public record or collection agency reference on your credit bureau report. Studies reveal that consumers with previous late payments are much more likely to miss payments in the future. However, as these items age and fall off the credit bureau report, their impact on the score will gradually decrease. (Most derogatory public records and collection items stay on your report for no more than seven years; there are other items that could remain longer.)

There is no "quick fix" to improve the score if the derogatory public record or collection item on your credit bureau report is valid. Keep in mind that satisfying or paying off the collection item or derogatory public record will not remove this information from your credit bureau report. The fact that it occurred is still predictive of future repayment risk, so it will still be considered by the score.

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If you have paid or settled for less than full amounts charge offs on your CB that are over 2 years old, dont they usually get deleted if you dispute them as not mine? I am about to start the credit repair process and have heard those are usually easy to get off due to the age and record keeping of credit card companies. Am I misinformed?

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Reagardless of what section it is in, one of my reports (TU) had a paid collection on it, and I saw an 80 point jump in FICO (not FAKO) when it deleted 2 years ago. That same paid collection still appears on my EQ and EX. Those 2 are 65 FICO points less than TU, with that paid CO being the only real difference. That paid CO is now 6 years old.

The "it doesn't affect your score much" after a certain point is hooey. It may affect your score less, but you're still in a muckier pool with a lower score ceiling.

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If you have paid or settled for less than full amounts charge offs on your CB that are over 2 years old, dont they usually get deleted if you dispute them as not mine? I am about to start the credit repair process and have heard those are usually easy to get off due to the age and record keeping of credit card companies. Am I misinformed?

If you read my above post, you will see that I have one that is 6 years old. Of course I disputed it, but there it sits.

Paid charge offs and collections are the hardest to get rid of.

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