charged off as bad dept

You can try what is call a pay for delete. Offer to pay $xxxx in exchange for the balance settled in full (or paid in full, if need be) and the deletion of negative info from credit report.

Right -- and, unless you both make some kind of deal/agreement, certainly DO NOT pay the debt -- the 'current activity' will drop your score.

Do you need to get a loan of something right now? Is there a reason that you want this off before the date for it to drop off? If not, I would say leave it alone, I have had no luck with the pay for delete, I paid off three cards and still have the negative crap on my file, they all say paid. I think it would be hard to get a collector to honor this action.

Goodnatured is honest in her words. My husband dealt with this quite a few years ago when he had a car repoed. They sold it at an auction for much less than we actually owed on it and we were responsible for the remaining balance. Feeling we got jipped by the car lot for selling us a bad car we didn't pay anything else. A couple years later we wanted to get it off his credit record so we contacted them to get a payoff amount. They promised to take it off the report and yada yada yada...well it stayed on for a long time looking big and bad.

This is exactly how monies still due after a short-sale foreclosure return to haunt the lienholder. It is always best to try to make an arrangement before things get HOT. Otherwise, a creditor has the leeway to hassle you for quite some time. Face it - there was a contract. If that contract cannot be re-negotiated, or refinanced, there are consequences.

Fireyone, is it still on your account now? How long did it take them to negotiate with you?

I have 4 delinquent accounts that I have since paid off, I have until aug of 2010 until they drop off, I am concentrating on getting one more paid off and I will be freed up by the time the negatives are due to drop off.

1. When a negative drops off, does it raise your score and by how much?

2. If two different companies are reporting on the same debt, the original and a collection agency does the collection agencies report drop off when the original creditors does?

This 2010 thing works for me, I am paying my bills on time and not making any major purchase until after then. I figure that will give me time to let the negatives drop off and build good credit history with good payment history at the same time. It seemed so far a way 2 years ago, but I am slowly but surely getting there.

1. When a negative drops off, does it raise your score and by how much?

IDK, but since the accounts were so old (seven years), the effect would be less than a recent delinquency.

2. If two different companies are reporting on the same debt, the original and a collection agency does the collection agencies report drop off when the original creditors does?

By law, the drop off date is the same (seven years from date of charge off).

Great, thanks for the reply morning star, two years is not that far away and I am thinking that as these negatives drop off my current good activity in a two year time frame should show in my favor right?

What I mean is if I continue to make my mortgage and car payment on time, which is the only current bills that I have once the negatives (which are paid) are off, then my score should raise quite a bit right? Am I right in thinking this way?

Goodnarured, It is no longer on my husbands credit record but that repo stayed on for 7 years even though it was showing paid after we took care of it. So in a way it still looked big and bad on there. Also there was no negotiating at all. They wanted the exact amount for the vechicle that was left after they auctioned it off.

What I mean is if I continue to make my mortgage and car payment on time, which is the only current bills that I have once the negatives (which are paid) are off, then my score should raise quite a bit right? Am I right in thinking this way?

Yes, you are correct. Mortgages, followed by auto loans provide the biggest boost to your score. I would add a credit card or two for small monthly purchases (PIF every month to avoid incurring interest charges).

That sounds like very good advice. If you shop around you can find lower interest rates. I am not sure but I think some interest rates depend on your credit score. Anyone know if there is any truth to this?

bankrate.com is a reliable and reputable place to look for a credit card. Your score, or factors that affect your credit score will impact the interest rate you are eligible for; every creditor has its own criteria for issuing a line of credit.

Morningstar How do you get all your info. I wish I knew half of what you do cause it would have helped me out somewhere along the way. At any rate thanks for the info. Its helpful.

I vote for bankrate ofcourse for the purpose. The interest will be judged depending on your creditworthiness. Now you have to know exactly what will be considered and taken into account by the creditor to analyze your credibility.

Thanks Anthony. I think I have actually even heard of bamkrate.

Morningstar How do you get all your info. I wish I knew half of what you do cause it would have helped me out somewhere along the way. At any rate thanks for the info. Its helpful.

I used to be a collector, and I find these topics interesting. The websites for CNN and MSN (more of the latter than the former) often have decent articles regarding such subjects, and there are great resources available:

Google*
FTC
FCRA, FCBA, FDCPA
Your state's consumer protection agency and/or Attorney General

*caveat: not just knowing what keywords to look for, but knowing that legitimate looking sites can still spread misinformation (best example I can think of: look how many websites spread the myth that a collection account remains for seven years after it is paid)

Oh, and you're welcome :)

Thanks a ton Morningstar. Can I ask you why you got out of the business? I imagine it too be stressful.

Stressful and probably get a lot of headaches, it can not be pleasant working with people to try and get them to pay their bills. What do you do now?

After more than ten years since high school graduation, I've enrolled into the local community college. In the future, I will transfer to a university and earn a degree in econ, business, accounting, or political science (although I may pursue a double major). Following a the completion of a 4 year degree, I will either earn a master's, or enroll into law school.

Great plan you got there morningstar. Hope all your dreams come true. I know you have helped me out here alot. I wish you the best.

It is never too late to get back into college, I got my bachelors when I was 37, believe me it was very stressful, I felt like an old lady in that class room with all those young kids, but you know I think that I took it more seriously at that age.

I wish you luck and am happy for you, if I would not have gone back to get my degree I would not be in the job that I am in now, I am doing the best I ever done in my life.

Please keep us updated as you progress, we all want to see you through and celebrate your graduation here, it will seem like a long road ahead, but believe me, time flies, one semester at a time.

I don't think age should ever be a factor when it comes to education. People some times put up their own barriers. Age definately should not be one of them.