Posted on: 24th Apr, 2007 04:30 pm
is it better to have a "[color=Indigo:ef10eef8b5]PAID IN FULL- AFTER CHARGE OFF[/color:ef10eef8b5]" or a "[color=Indigo:ef10eef8b5]PAID IN FULL - SETTLED FOR LESS[/color:ef10eef8b5]"? My husband has one paid in full - settled for less while actually it was paid off in full after a charge off for a lot more than what the cc limit was. Limit was $300 but he ended up by owing more than $3500 and had to pay a lot more than what he actually had spent on that cc and it is very annoying that even then it shows up on the cr as settled for less..
It is better if it appears as paid in full rather than being a settlement entry in your Credit report.
"My husband has one paid in full - settled for less while actually it was paid off in full after a charge off for a lot more than what the cc limit was."
As your husband had paid off the charged off debt it should get reported as paid charged off under FDCPA.
As your husband had paid off the charged off debt it should get reported as paid charged off under FDCPA.
Let me tell you one more thing. Whenever you decide on paying off charged off accounts check if it is within statue of limitations (SOL) period or not.
If you see that the account has crossed the lawful specified collection period as applicable in your state then you need not pay it off.
Miller
If you see that the account has crossed the lawful specified collection period as applicable in your state then you need not pay it off.
Miller
Hi Rodney,
I think "Paid off in full after charge-off" is a better way to reflect the status of your debts on the credit report, if you have repaid it even after the charge-off.
It is true that every state has a Statute of Limitation Period after which the debtor may avoid paying the charge-off. But this does not remove it from the credit report. So, to get a clean report, I feel one should pay down any existing debt and then request the creditor or the credit reporting agency to update the information in the report.
Good luck
I think "Paid off in full after charge-off" is a better way to reflect the status of your debts on the credit report, if you have repaid it even after the charge-off.
It is true that every state has a Statute of Limitation Period after which the debtor may avoid paying the charge-off. But this does not remove it from the credit report. So, to get a clean report, I feel one should pay down any existing debt and then request the creditor or the credit reporting agency to update the information in the report.
Good luck
Can anyone suggest how to improve my score. I had seven charge-offs but I have paid them in full. I've heard that there are agencies that help to improve your credit history. Any clue as to how effective they are? The charge-off are just like nightmares. I am afraid that this going to last for 7 long years.
Yes, there are such agencies that talk about improving your credit score to a moderate value. But I believe self-help is the best help one can give to himself. The charge-offs on your credit report will remain but at least their affect will be less negative than if you had not paid off the remaining debt.
Now that you've paid the charged-off amount in full, try opening a secured credit card account. Consider taking at least $1000 and shop with a number of banks for the card. In return of the money, the bank will open a savings account in your name. They will then hold the money as security for a credit card of the same/slightly higher amount. You can then use the card sparingly and pay it off on a monthly basis.
If you can use the card responsibly, the bank will release your deposit and give it back to you thereby converting the secured credit card into an unsecured one.
Now that you've paid the charged-off amount in full, try opening a secured credit card account. Consider taking at least $1000 and shop with a number of banks for the card. In return of the money, the bank will open a savings account in your name. They will then hold the money as security for a credit card of the same/slightly higher amount. You can then use the card sparingly and pay it off on a monthly basis.
If you can use the card responsibly, the bank will release your deposit and give it back to you thereby converting the secured credit card into an unsecured one.
how an account will appear on the report after I pay off the charged off balance?
Hi Marget,
After you pay off the balance on the charged off account it will appear on your report as settlement instead of it being reported as paid as agreed. The reason is that you did not make the payments according to the original terms of the agreement you had with the company.
I would also let you know that sometimes it can be possible to negotiate with the company and make them agree to report the pay off to be "paid as agreed" rather than "settled". "Paid as Agreed" will be much better than a settlement on your credit report.
Niicss
After you pay off the balance on the charged off account it will appear on your report as settlement instead of it being reported as paid as agreed. The reason is that you did not make the payments according to the original terms of the agreement you had with the company.
I would also let you know that sometimes it can be possible to negotiate with the company and make them agree to report the pay off to be "paid as agreed" rather than "settled". "Paid as Agreed" will be much better than a settlement on your credit report.
Niicss
My payments are due monthly, if creditor receives my last payment on 12/06, & I miss the payment on 1/07 and all rest payments resulting in charge off, & creditor doesn't report to bureaus until account is ninty days delinquent, is it right if creditor says that delinquency didn't occur until 3/07 as this was the time they first reported it to the bureau?
Hi Viernes,
Welcome to Mortgagefit discussion board.
As per Section 623(a)(5) of FCRA, if a creditor reports charge off to credit bureau, he has to notify the bureau about the month & year of the start of delinquency which immediately preceded the charge off. And Section 605(c)(1) states that the 7 yr. period for which a charge off is reported begins 180 days from that date which the creditor notifies to the bureau.
So what all this means is that delinquency which resulted in charge off started in 1/07, when the first payment was missed. This month & year will need to be reported to bureau by your creditor and thus will be used to calculate the 7 yr. period to report the charged off account.
Do let me know if you have any other questions.
Thanks
Blue
Welcome to Mortgagefit discussion board.
As per Section 623(a)(5) of FCRA, if a creditor reports charge off to credit bureau, he has to notify the bureau about the month & year of the start of delinquency which immediately preceded the charge off. And Section 605(c)(1) states that the 7 yr. period for which a charge off is reported begins 180 days from that date which the creditor notifies to the bureau.
So what all this means is that delinquency which resulted in charge off started in 1/07, when the first payment was missed. This month & year will need to be reported to bureau by your creditor and thus will be used to calculate the 7 yr. period to report the charged off account.
Do let me know if you have any other questions.
Thanks
Blue
Yes that's true. If a person falls behind on payments & never catches up then delinquency commences when the first payment was missed. From that point onward the specific account is past due & thus delinquent.
My account was charged off by citicard and passed on through different collection agencies. The account is presently with company named FMS, and I am making as per the agreed payment arrangement that they have asked. Now the thing is will citicard should be on my report as it is now with FMS? Or it should be only FMS collection reported in my credit report?
Hi Henrick,
Welcome to Mortgagefit discussion board.
After the account is charged off by Citicard it should not be reported. But if they have retained ownership of the account then both can report the account.
If the debt is sold then original creditor (Citicard) should be showing zero balance/sold account & the collection agency will be showing it as paying as agreed.
Do let me know if you have any other questions.
Thanks
Blue
Welcome to Mortgagefit discussion board.
After the account is charged off by Citicard it should not be reported. But if they have retained ownership of the account then both can report the account.
If the debt is sold then original creditor (Citicard) should be showing zero balance/sold account & the collection agency will be showing it as paying as agreed.
Do let me know if you have any other questions.
Thanks
Blue