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OKAY SO I LOST MY JOB AND COULDNT PAY TWO OF MY CREDIT CARDS MACYS 2500 AND CAPITAL ONE 1500 AND IN DESPERATION OF MONEY I OVERDREW MY WAMU ACCOUNT AT THE TIME THEY WERE STILL AROUND SO NOW THEY SENT MY PERSONAL BANK ACCOUNT TO COLLECTION AN D THEY GAVE ME AN OPTION TO SETTLE FROM 1000 TO 600 SO I DONT KNOW IF THIS TOO WILL AFFECT MY CREDIT THEY SAID IT HASNT BEEEN REPORT IT TO THE CREDIT BUREAUS??? IS A GOOD IDEA TO SETTLE/ AS FAR AS MY C. C 'S GO ONE CAPITAL ONE HAS BEEN CHARGED OFF AND MACY' S NOT 2 SURE SO IM TRYING TO DO THE BEST THING FOR MY FUTURE AND PRESENT DONT WANT IT 2 AFFECT ME ANYMORE THAN IT ALREADY HAS ?? WHAT AREMY OPTIONS ?
cgarged off debts
Hi av,
Welcome to this forum :) .
You can first get a copy of your credit report and check the detailed listings on it regarding these accounts. You must check to whom the accounts has been handed over. If you have any doubts regarding the collection company, you can check the company details with the Better Business Bureau.
Settlement with the collection company lowers the due amount to be paid. So accepting the settlement offer, if it is affordable for you, is a good option to resolve the debt problem. However, you should request a written copy of the settlement offer. Moreover, you can request the company to consent to a "Pay for delete" (PFD) agreement. With a PFD, your account will be reported as "Paid as settled". However, all collection agencies don't agree to a PFD.
Charge offs do affect your credit score negatively, but once you pay off the settled due amount, your credit score gradually starts to get better.
checking accounts are also listed on something called chexsystems. So you won't be able to open a checking account until you settle that account.
the credit cards may not settle with you until they go into collection but they are becoming more flexible so ask.