Sunday, September 11, 2011
Resolve Your Due Accounts’ Status
The most important factor that impacts your credit score is your payment history, which will take 35 percent of your score. If you have several past due accounts on your credit which will affect your score significantly because your payment history is a large part of the credit score. Make effort to let all your past due accounts reported as “current” or at least “paid.” because it is much important to take care of the payment history for your credit repair.
Check the current on your accounts that are past due which are not yet charged-off. One your payment is 180 days past due with your account, it is the worst thing as charge-off.
Pay the total amount that’s less than 180 days past due so you will save from charged-off even your accounts are delinquent. Be known that the further behind you are, the higher your catch up payment will be. The creditors may help to waive some of the latest penalties or spread the past due balance over few payments, so, in order to figure out what you can do to get back current, contact your creditor as soon as possible. Ask them for help and let them know how you are anxious to avoid charge-off. It is better to talk to your creditors and negotiate with them so that you will have opportunity to re-age your account to show your payments as current rather than delinquent.
Make payment to your accounts that’s already charged-off as soon as you can. You are always responsible for a charged-off balance with your accounts. If it takes too long and become older, charge-offs will affect your credit score heavily and so it will be much hard or even impossible to get approved for new credit and loans for you in the future.
When the account balance become zero which means it is paid, you should have your charge-off paid in full and the credit report has been updated already. Anyways the charge-off statues will continue to be reported for 7 years from the date of charge off. Beware that if the creditor agrees to accept a settlement and cancel the rest of the debt, you will be able to settle charge-offs for less than the original balance which is a good option. Also The settlement status will go on your credit report and stay for seven years. Sometimes you are able to convince the creditor to delete charge-off status from your credit report in exchange for payment, but it is not that easy. However, paying your charge-off and getting a favorable account status is an added bonus to you.
Keep an eye on with your collection accounts. If the accounts have been charged-off or fallen behind for some months they will be sent to a collection agency and added to your credit. They will be sent to a collection agency even if the accounts are not normally listed on your credit.
The collection will keep with your credit report for 7 years based on the original delinquency. However, you can pay in full and even try to pay to delete in the process or you can settle the amount for less than the balance due if you are approach to paying collections for charge-offs.