Advice on paying off charged off accounts on credit report?
Answer:
Accounts that are 7 years old will fall off anyways. If you are close, then I would wait for them to fall off, especially if the statute of limitations has already passed on the accounts.
Most mortgage lenders do require that you satisfy all outstanding debts that are not in a current status before they will approve you for a loan. If you are serious about getting a mortgage, then you should consider paying off those old debts. I recommend starting with the most recent ones, and then working your way to the older accounts.
If you owe a lot on an account, then a settlement can satisfy the debt and save you some money. While it may not improve your score as much as paying if off in full, sometimes the immediate savings may be worth it.
If you do settle, make sure you know what the pitfalls can be.
Yes you have a better chance because they know that you are in a good credit rating.
You still owe the money. You still have the debt. You should negotiate with the creditor to have that record totally removed if you pay them. They could sell them to a collection agency. Then they would continue to appear on your report as a collection item.
Call the business' and offer to make a settlement. Have them put the promise in WRITING to take off your credit report once 100% solved (some may or may not due this)..Have them draft out of your account the settlement. Then, call your local Consumer Credit Association and forward a copy of the letter to them once the bill is 100% paid off. You may also want to keep a copy just in case it still may be on your credit report. After about a month or so, that debt should not show. If it does, that is grounds for a legal dispute since you have it in writing.
Negotiate with them. If youw owe them 100 they would settle for 75 or even less. and ask them if once you pay it would they plese remove it from your credit file and explaine to them how you went thru a financial crisis years back and how you are trying to re-establish your credit. It worked for me on several accounts. And yes paying off accounts would help you get a better rate.
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