Steve, I need more advice: I’ve just found out that I’ve two cards, Sears @ $1,300 & Mervyns @ $800 that have been charged off; Mervyns @ $1,200 has been closed. I have a good job, make good money so their was no perfectly sane reason why i stopped paying; I just did. Sears was charged off on Dec 19; spoke to them on the 20th but they said it was too late. It is with their internal recovery department. All my other credit cards are in good standing, but I’m afraid of how these will be affected by the charge off/closed accounts.
What do you suggest I do now? I have no idea. Do I settle as quickly as possible in full or offer a settlement? I’ve read about letters of deletion, do those work? How about having them change the status from charged off to something that is not negative? I’ve read so many conflicting reports online that I don’t know what to beleive anymore.
It is what it is. Creditors are not inclined to falsify the reporting of the account for payment. The creditor has an agreement with the credit bureaus that says they will report the account factually and accurately.
The best bet at this point is pay them off quickly, and in full. Once you do that they will remain on your credit report but they will not still be delinquent and current. As time passes and you keep using your other cards on-time then your credit score will improve. If you don’t have any credit cards remaining you may want to consider getting a secured credit card or two that report to the credit bureaus to help rebuild your credit faster.
Please post your responses and follow-up messages to me on this in the comments section below.