creditsoup Posted March 15, 2011 Report Share Posted March 15, 2011 Quick question for all the credit knowledgeable people here. Years ago (around 12/2006) I had one credit account that was settled for less than what was owed and another account that was a charge off. My credit score (FICO) was back into the 700’s, but in reviewing my history it still shows these as negative factors affecting my score. Recently I disputed one of the accounts that had a few errors and when it was reported back to the credit bureaus, it dropped my score into the upper 600’s. This was a drop of over 30 points. They updated a few things besides just the errors I had requested to be reviewed. I got to thinking and decided I would give the two companies a call to inquire bout making the accounts good by paying off the amounts that were charged off or negotiated. The amounts are very low ($100 and change on one and $200 and change on the other one). When I spoke with one company I was told that it would reflect paid in full on the account but that the 7-year clock would reset. I view this as being penalized twice when all I’m trying to do is make good on the amount I owed back when I was an idiot about credit. I would pay it off today if the dates would remain the same meaning the negative marks would be removed by 2013. However, I’m not going to be penalized with a 2018 date for trying to make good on the accounts. So here are my questions. In this situation would you pay off the debts and ask for letters that show the amount was paid and that the accounts can be updated accordingly, or should I just not worry about it and let the accounts be purged in 2013. I want to make this right, but I also don’t want that timer to start over. Is there anything you guys know of that could help me convince them not to reset the clock once the amounts are paid in full? I know I was an idiot back then when I negotiated the settlement for such a low amount. However, I want to make this right by taking care of those previous responsibilities. Thanks for the help and allowing me to post here… Link to comment Share on other sites More sharing options...
creditsoup Posted March 16, 2011 Author Report Share Posted March 16, 2011 Just to clarify what I'm asking my main goal is to get these two marks removed from my credit reports. They are the remaining dings on my credit. After reading several of the stickies here I think I made a mistake by calling them and asking about the unresolved debt that is several years old. I just thought that by making an attempt to resolve both the charge off and negotiated amount they might look favorably on removing these negatives that have graced my credit reports for 5 years now. If I wrote them a letter and included it with the payments would they even consider it? I've managed to bring my score from the mid 500's to the low to mid 700's in a few years, but this 35 point drop really derailed my confidence today. All because I disputed small errors on that account... Link to comment Share on other sites More sharing options...
1hottchic Posted March 16, 2011 Report Share Posted March 16, 2011 Just to clarify what I'm asking my main goal is to get these two marks removed from my credit reports. They are the remaining dings on my credit. After reading several of the stickies here I think I made a mistake by calling them and asking about the unresolved debt that is several years old. I just thought that by making an attempt to resolve both the charge off and negotiated amount they might look favorably on removing these negatives that have graced my credit reports for 5 years now. If I wrote them a letter and included it with the payments would they even consider it? I've managed to bring my score from the mid 500's to the low to mid 700's in a few years, but this 35 point drop really derailed my confidence today. All because I disputed small errors on that account...Paying charge off accounts will not increase your credit score at all. However, if you can get the two companies to agree to a PFD (Pay For Delete) that would be the best outcome for you.Or if they could change the status of how the account is reporting. Paid as agreed never late, but what I've come to understand is a paid charge off or one that hasn't been paid will reflect basically the same.I might be wrong so perhaps a more seasoned member will chime in. Link to comment Share on other sites More sharing options...
creditsoup Posted March 16, 2011 Author Report Share Posted March 16, 2011 Thanks! After reading a good bit more last night I think Pay for Delete might be an option. The 2 companies I'm dealing with are Lowes and Wells Fargo Financial who sold the debt to Zenith. When I spoke to WFF they told me that I could contact Zenith and pay them, then Zenith would furnish me with a receipt showing the debt had been paid. After that I would have to send WFF a letter along with the receipt and ask them to review the file and make a decisions as to whether or not it can be removed. Lowes didn't offer any advice at all. Both accounts reflect a charge off as the status (even though one was a negotiated settlement) so I wonder if paying them off would then change that to something more appealing on the report. Link to comment Share on other sites More sharing options...
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