Chargeoffs and bad credit


The last couple of years has put me into a bad fiancial situation. I have a few credit cards that have been charged off and put into 3rd party collections and I’ve had a few late payments on other debts. Even though I haven’t checked it, I’m sure my credit score is horrible.

Things are beginning to turn around now and I’d like to start investing into RE (preferably for flipping). But my credit score will probably keep me from doing this immediately on my own.

My question is, will setting up a payment plan with the 3rd party creditors and paying them on time help my credit score, or since they are already charged off, will it not make any difference?


Howdy Pa-Agent:

If you can get them to change it from charge off to paying as agreed but with previous lates that would be better than a complete charge-off. Any up grade to show you are paying will help some. If you start paying and no change is made it will do no good, Ask what they can do to help improve your score.

I agree w/ Tedjr. Get in contact with your creditors and ask if they will show that you are now paying. This will start you in the right direction.

Do you have any open and current tradelines?

If not you will need to establish some new trdelines to get your score headed in the right direction.

Thanks for the replies. I started contacting the collection agencies to set up payments. They said that once the debt is paid off, they send a letter to the credit report companies to change the status of the dept as paid. Hopefully they will actually do that.

If you are able to give a credit union $500 or so they can open up a secured share account. That will allow you to pay back your own money but have it reported as on time payments.
I would also add that if you can help it make sure from this day forward you are not late on anything.
Good Luck

It is great that you have made arrangements with old creditors. As RAMONA mentioned, do not forget about new credit.

You need to get some new lines opened and reporting. This will move your credit forward. Only time heals credit reports. Especially if you are rebuilding.