Hi there. I've recently renewed my interest in increasing my dismal credit score (mid fives). While I'm in pretty bad shape I'm lucky in that I don't have too much debt (presently 20,000 in student loans which I stay current on). Unfortunately I am unlucky in that I have some bad marks on my record from a period of unemployment and poor
judgment in the past.
Worst of all (to my knowledge) I have a charge off from chase bank in the amount of $1000. FreeCreditReport.com characterizes it as "Potentially Negative, Closed". This was opened in October 2005 and when sorted by date is the oldest entry on my report. I have considered calling up chase and negotiating the removal of this from my report in exchange for payment.
So my questions. . .
Is chase likely to do this for me? Are there any negative circumstances that could arise from my doing this? Similarly, could waiting to do this pose any threat (aside from continuing to drag my score down)? I'm in Michigan so I don't think it's worth waiting for the statute of limitations to expire. On the other hand I'm not in a huge hurry to part with a thousand bucks and no one else has laid claim to it. Seems to me that I should pay off my active, "potentially negative" collections first while also negotiating for a deletion or paid as agreed status.
I also have a couple entries for that are "Paid, Closed" on my report. Am I correct in assuming there's probably no chance of removing these entries? Being that they are already paid it seems I would have nothing to offer these creditors.
Lastly I have one small entry for a "Potentially Negative, Closed" collection account (opened exactly one year ago)on a $200 medical bill. Should I just offer to pay this and try to negotiate its deletion?
I apologize if any of my questions seem stupid. I'm just puzzled by the various different classifications.
POMF, Even if the debt is lying there and n o one is trying to collect does not mean they will not try to do so in the future. Alot of times I see creditors pursue a debt right before the Statue of Limitations starts to run out. If you do call and make payment arrangements be sure to ask for a Pay for delete. This is something you will need to get in writing because some creditors will not take the time to do the extra step once they are paid.
I do not believe a paid;closed looks too bad on a report. The account from chase and the medical bill are probaly your biggest worries. Call the medical place and ask them for a PFD also. There are some really good sample letters here at the forum. Let us know if you need any.