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I recently went broke over the past year and I allowed five credit cards become charge offs. I just checked my score for the first time this year and found my credit wasn’t that bad even with the charge offs. If I start settling these accounts through payments, will my credit score stay the same (or improve), or is there a chance it will still get worse? (Assuming I do nothing else to hurt my credit)

7 Thoughts on Will my credit score get worse once I start paying charge offs?
  1. Reply
    August 13, 2011 at 4:42 am

    If you pay something off, first negotiate and they will probably settle for less. Tell them you want them to delete it from your credit report. Get this in writing before you pay.

  2. Reply
    August 13, 2011 at 5:25 am


  3. Reply
    August 13, 2011 at 6:01 am

    It’ll settle the debts with the credit card companies. Not paying them will cause your rating to drop.

  4. Reply
    August 13, 2011 at 6:43 am

    Your score could be very good, but if a future company sees write-offs that are unpaid, they will not lend to you until you do pay them.

  5. Reply
    August 13, 2011 at 7:02 am

    I’m with Mo on this. Make settlements – get letters that the settlement is accepted as paid in full before remitting. Agencies are notorious if you don’t get it in writing for not keeping their word, You’ll get that was last month, things have changed. After getting it in writing, remit. Get letter stating paid in full.

    Agencies, even when they own the debt, are notorious for not reporting it settled. If you want it deleted, again in writing, you may have to settle a little higher. The answer to your question though, is yes settle them yourself, not thru debt settle co.

    Also if they don’t delete, or report that settlement that letter is important that you settled it – you’ll have to send it to Trans-Union, Equifax, and Experian, yourself.

    Good part of settling w/agencies, they are purchasing often and don’t send the 1099, there are taxes due , believe it or not, on settlements, the amount you did not pay the difference of bal and amt you settled for. Agencies, are sometimes, not always, not diligent in reporting to IRS, dealing in volume, just want to move on to the next acct. Settle at bank level you will definitely get 1099.

    Settle, great way to improve your score.

  6. Reply
    August 13, 2011 at 7:37 am

    mate have a quick browsw thru the link below. Talks baout credit report

  7. Reply
    August 13, 2011 at 8:34 am

    Many creditors go past the score and actually read the report. What do you want them to see? If they see accounts that you just walked away from, it will look really bad, even if they’re old and don’t impact your score much.

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