Gula187

attemtping to rebuild credit

2 posts in this topic

Whats up guys and gals, Im attempting to rebuild my credit for the second time. i was on a good road the first time but i messed up a signed for my brother to get a truck, he made three payments and just stopped. so now  i have a $16000 charge off with capital one. The only way i found out about it is because the truck was totaled and the insurance company only wanted to talk to me, so they are sending me a check for $10k. The truck have two more years left to be paid. If i pay capital on the entire amount that i owe will my credit score increase? and if so what should my next move be? thanks in advance

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If this were me, I would negotiate with Cap1 and tell them you will pay a lump sum to consider the account paid in full.  I would not offer the full $10k at first, because it is likely they will try to negotiate you higher, whatever your starting point is.  I would probably start by telling them I will pay a lump sum of $8k to consider the account paid in full.  When they say they can't accept that, I will tell them I am willing to work with them, but I don't have very much, and I would increase my offer a little, to maybe $8500.  Repeat this until they accept or until you hit your $10k limit.

Just be sure that any deal is put in writing before you send payment.  Having the account shown as paid in full with a $0 balance will improve your credit a little, but it will not go back to the point it was before because it will still show as a charge off.  But a paid charge off is much better than a CO with a balance owed.

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