charge off vs settle - impact on fico score

[theGman]

i have two unsecured cards. 10 k each. Maxed out. My fico is 562 and have a good 9 yr credit history.

one charged-off a month ago. a second card could get charged off in two days if i don't settle. i can settle it for 3K of 11k (i.e. 30%).

what will my score be if i allow it to charge off vs settle?

[willingtocope]

Neither will improve your score. If you don't settle you might get sued. If you do settle, pay only the OC, get it writing, get ready to pay taxes.

[theGman]

I am willing to pay to get some good advice if necessary. I need to resolve all this by tomorrow. Any ideas?

[soveu53]

Make sure you negotiate them deleting that off of your credit report or putting a favorable rating on your report. But, I would mainly go for the deletion if you can.

[willingtocope]

Highly unlikely that an OC will delete. Do not pay a CA or JDB.

Send the check to the ASPCA...

[theGman]

thank you. thank you.

If I am able to settle both accounts with the OC and pay over a few months, how will this improve my score? Or will it simply prevent it from getting worse?

It would be great to have a way to improve that 562 score.

[willingtocope]

If tou pay the OC...in fulll...your sucker score will improve by a least 100 points over the next year, assuming you have nothing else bad on your CRAs. (Use the search function to see what sucker score means)

[Spiket]

Any experience with US Bank Credit Card collection Dept with a payment plan

I have the same rep call every month and I authorize the payment to be paid the last day of the month

I’m not good about checking but I was getting ready to apply for an equity loan and checked my credit report.

After reviewing my statements I found that the payments were not posted on the agreed day 5 times in the past 14 months. One was for Sept 2010; even after I called back to be sure it would be applied correctly. The rep I speak to says it is the credit bureaus that are wrong but assuming the information on the statement I receive shows no payment I have to assume it is a US Bank error. When it happens the next month statement shows 2 payments and even an adjustment for the extra interest charged and NO late payment fee! When I asked for a supervisor I was transferred and then went to the supervisor’s voice mail –several days and still no call back.

Anybody have a name or number at US Bank I can contact??

[MsJackson]

ADVICE NEEDED:

I've paid off almost all my credit card and outstanding debt, but am undecided on how to proceed with the next debt payment. Sprint turned a bill over to Afnicollections for the amount of 938.11. There is a settlement offer of 375.24. I am not aware if their settlements reflect paid or settle on credit reports. How would you suggest I handle this? I would like to buy a house (first time home buyer) in the near future and do not want anything of course to reflect negatively on my credit report.

And lastly, I have another credit card with a balance of 2228.22 due. The credit limit on the card was 1800.00, so the amount due is over. What are your thoughts on that as well? If I pay the difference to get it back to the minimum, would that help?

Any input would be very helpful. Thanks.