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Can a Charge-Off be reopened under good standing?


obsoleet
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I have been working to correct a bunch of problems I created a few years ago when I lost my job.  Bit by bit I'm getting them corrected with the help of everyone in this forum (including Linda7)!

 

The next account I would like to correct is a line of credit with a local credit union for $1000 that went bad back in 2009/10.  It is currently listed as a "Charge-Off".  I'm not sure how I should approach this... I don't see any collections looking for it and I would love to have the opportunity to have it reopened again so that I can use it since it would be great to help me reestablish credit.

 

I believe I need some revolving credit (line of credit) since I have none currently (including no open credit cards) and can't seem to get anything but secured cards (one of the rejection letters states "no open revolving accounts" or something along those lines).  I've opened up an installment loan with BMW for ~$50,000 and have been (and will be) paying on time but it is recent (since November '12) so it doesn't help much atm.  I have also paid off $36,000 in student loans (showing paid as agreed for two years and now have $0 balance and closed).  

 

If I call the OC, given the above scenario, do you think they would be willing to reopen my line of credit if it has been charged off already or could this possibly open up a can of worms with SoL etc?

 

What would be the best course of action if I would like it to be removed from my report or put into current/open/pays as agreed standing?

 

Thanks in advance for your help!

 

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Sinc its a credit union, you may be able to work with them  Go talk woth the manager.  Its unlikely they'll reopen the account, but they may mark your reports "paid as agreed".

 

As for other cards, I'd suggest you be satisfied with a debit card on your checking account.  Don't get caught in the credit card trap.

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As for other cards, I'd suggest you be satisfied with a debit card on your checking account.  Don't get caught in the credit card trap.

 

The only card I want is an AMEX again since I've had my parents platinum for years and liked the PIF aspect.  I have a job that provides an incredible amount of income and have been using just my debit card but it doesn't come with some of the benefits that the Platinum AMEX provided.  I'm under the assumption that, in order to get AMEX again, I need to show some revolving credit history demonstrating my credit worthiness once more.

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If you defaulted or were late on AMEX, they'll never talk to you again.  If not, then a PIF each month would be ideal...even a plain old blue.

 

Otherwise, if you run your "incredible income" thru a major bank, and they've already given you a debit card....try them for a CC.  You'll need about 6-12 months of cash flowing thru them, but they'll be happy to give you a card. 

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If you defaulted or were late on AMEX, they'll never talk to you again.  If not, then a PIF each month would be ideal...even a plain old blue.

I was listed as an authorized user since it was my parents account and had the history on my CR but never was late with them.

 

 

Otherwise, if you run your "incredible income" thru a major bank, and they've already given you a debit card....try them for a CC.  You'll need about 6-12 months of cash flowing thru them, but they'll be happy to give you a card. 

After the issues with the credit union when I fell on hardship, I lost my banking privileges.  I ended up banking with USAA since then but banking is all they will allow since I am not military (or family of military).  That is why I was curious about going back to the Credit Union or whether that would open a can of worms (my goal with everyone I had an issue with has been to acquire a PFD and not a "Paid" or "Settled" status)... should I just open a secondary account with a bank (I really don't wish to get rid of USAA) and use them for 6-12 months and apply for one of their cards?

 

Also, was paying off the $36,000 in student loans a good idea (which I had been making two years worth of perfect payments) or should I have just kept making the payments?  I thought it would lower my debt ratio but now I'm not so sure that was as important as payment history on a credit report.

 

Thanks for your advice!

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I'd suggest opening an account with one of the big babks...Wells Fargo worked for me.  In fact, I'd use that for the bulk of your money, and keep Usaa and its debit card for shopping on line.

 

Student loans don't factor into most of the FICO scoring models, so paying them off was probably good.

 

If you've got a good income that you can document...you might get an AMEX blue right now.

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If you've got a good income that you can document...you might get an AMEX blue right now.

I'm not sure I can since I still have four things I'm trying to get off my credit with PFD

 

- Two credit cards (HSBC and Credit One) both small balances (under $1000) and defaulted in 09/10... both have collections open with LVNV and Portfolio recovery (in process to get a PFD

 

- One Medical Collection for $200 (they won't do PIF for PFD) and was from 09/10 not sure what my next move should be yet.

- The Credit Union Line of Credit for $1000 (which I asked about in this thread).

 

I have been able to get PFD's for several other things so I'm chipping away at the mountain but I am told rather than focusing on strictly cleaning my report I should also be attempting to show credit worthiness (hence paying off the loans and opening a new car note even though I already have a car).  I could pay these off cash right now but I am afraid that would do more harm than good (stay showing on my CR as negative at one time) since I have had success with PFD's recently.

 

Will I be able to still get a AMEX blue with those things on my report and my score showing ~580 FICO Equifax?  I can easily prove my income with W2's and recent pay reports. 

 

Someone advised that I should get a Gas Card/Store Card to help with revolving credit since I got turned down for not having revolving credit from CC companies... and guess what... I got turned down for a Shell Card and a Macy's Card (lol) for lack of revolving credit!

 

::: so much headache trying to make right what went wrong almost 4 years ago!   :(

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These days, most gas cards and stoore cards are just rebranded VISA or MC...usually thru Crap 1, so I'm not surprised.

 

Here's the order in which negatives hurt LEAST:  PFD, PIF, Settled, and settled for less than the full amount.

 

Always pay the OC directly...call them, don't enter your account number, but hold out for a real person...tell them you are prepared to pay in full but it is your personal policy NOT to deal with CAs, and if they want their money, they'll deal with you directly or take you to court and you'll let the judge decide.  Once the OC is paid, you can tell the CAs to get off your reports.

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Sinc its a credit union, you may be able to work with them  Go talk woth the manager.  Its unlikely they'll reopen the account, but they may mark your reports "paid as agreed".

 

As for other cards, I'd suggest you be satisfied with a debit card on your checking account.  Don't get caught in the credit card trap.

 

1.  I recommend a smaller local bank for checking and debit card.

 

2.  When you can handle it, open accounts at TWO banks, but keep 2/3 of your money in the one w/o a debit card.

 

3.  Avoid banking at:  [insert list of 33 top national banks]

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