What's my next move?

[Zeljka411]

I have been in the low to mid 500'a for what seemed to be an eternity.  After many years, things started aging out and off my reports including a repo and some collections.  All that was left was a small collection for (2019 was date of last on time payment) $450 from Capital One assigned to Portfolio Recovery Associates and a charge off from Bridgecrest Auto Loans ($299) and also 2019 was date of last on time payment.  

 

I settled with Portfolio and they updated it as paid for less.   They 1st reported the activity as paid for less, and reported a $90 balance, then a week later updated it to paid settled for less with $0 balance.  They sent me a letter they will delete the item in 30 days.  

 

That being said, I applied for a Discover secured card and was accepted.  I deposited $1,000.  I was shocked today when my scores on average went up 190 points!!   I now have a 696 score on all 3 with just these 3 items reporting.  

 

Should I pay off the remaining charge off of $299 and apply for another secured card like open sky or what should be my next move? 

[BackFromTheDebt]

With a score of 696, you should be able to get unsecured credit cards.  Opening a new card will be an initial hit, but in the long run the extra account will be beneficial IF YOU PAY THE ENTIRE BALANCE EVERY MONTH!! 
 

As for the $299, you have a question to ask yourself.  What is more valuable to you now, $299 or the rise in credit rating?   Also there is the possibility they might sue somewhere down the line.  
 

Paying off a baddie in full isn’t that big an advantage to your credit score.  It is still a baddie, just not as bad.  
 

What you want is a Pay For Delete.  You offer to pay the entire balance in exchange for them removing the balance from your credit reports. Make sure you have this all in writing before you pay a dime.  
 

If they won’t do a PFD, then the benefits of paying off the debt really aren’t worth it.  Either let it lie or, if you might have a big loan such as a mortgage in the next few years, settle for a smaller amount.