Merrick Bank payoff

[The Grinder]

Back to my orginal issue was Merrick Bank negotiating on my balance, well I asked and they went down to 80% of balance saving me over $400! But the kicker is the reduced amt will likely be counted as a chargeoff on my credit record
How much will that hurt my score? And if it does, can I go back and pay the $400 back to Merrick and have it removed??? Will the chargeoff be on my record for 7 yrs??

 

[quincy]

Back to my orginal issue was Merrick Bank negotiating on my balance, well I asked and they went down to 80% of balance saving me over $400! But the kicker is the reduced amt will likely be counted as a chargeoff on my credit record
How much will that hurt my score? And if it does, can I go back and pay the $400 back to Merrick and have it removed??? Will the chargeoff be on my record for 7 yrs??

What will be on your credit reports is your original negative debt for 7 years from the date of your first delinquency on the account that led to the default on your account.

How you pay off the account and how much you pay to satisfy the account holder should not make much difference in your credit score. It was your original failure to pay on your account as agreed and the resulting need for collection action that matters.

 

[The Grinder]

I was never late once, acct was in great shape, which shocked me they did this but she did ask me if I had a financial hardship

 

[quincy]

I was never late once, acct was in great shape, which shocked me they did this but she did ask me if I had a financial hardship

If you pay what is agreed to with the creditor that you can pay to settle the debt, that should not affect your credit score. Make sure you get any agreement in writing and that it is to be noted by the creditor on your credit report that you “paid as agreed.”

 

[PayrollHRGuy]

I was never late once, acct was in great shape, which shocked me they did this but she did ask me if I had a financial hardship

If you were never late what the problem? Though I think you mean "you were never late before you stopped paying."

 

[The Grinder]

If you were never late what the problem? Though I think you mean "you were never late before you stopped paying."

No the only time I didnt pay was when they offered (and I accepted) to waive the min payment due to covid back in April and got it extended again in May.

 

[The Grinder]

Will they fire the rep who authorized the settlement? Or they figure they charged me rip off interest for the last 4 yrs that they felt guilty? LOL not the case!!

 

[quincy]

No the only time I didnt pay was when they offered (and I accepted) to waive the min payment due to covid back in April and got it extended again in May.

Is this your only “positive” account? If so, it can actually be better to keep paying as originally agreed rather than paying it off fully. You want to show positive accounts and get rid of the negative accounts.

 

[The Grinder]

Is this your only “positive” account? If so, it can actually be better to keep paying as originally agreed rather than paying it off fully. You want to show positive accounts and get rid of the negative accounts.

I have 2 Discover acct both in good standing, so the Merrick was the only one even close to maxed out, now its zero'ed and my 2 discovers are running no more than 25% of capacity. The only other black mark is what I owe the aforementioned law firm a whopping $700

 

[quincy]

I have 2 Discover acct both in good standing, so the Merrick was the only one even close to maxed out, now its zero'ed and my 2 discovers are running no more than 25% of capacity. The only other black mark is what I owe the aforementioned law firm a whopping $700

Not bad, then.

What affects the credit score most is payment history, followed by the amount of debt compared to the amount of credit available.

 

[The Grinder]

I just checked Merricks web site, they still have my balance as $425 the amount they said they would chargeoff if I paid the balance in full, I hope they dont rescind the offer, but maybe on a chargeoff it takes a few days to update

IIRC dont I have something like 100 words to dispute or to put in my 2cents in my credit report regarding whatever unfavorable mark may be on there??

 

[quincy]

I just checked Merricks web site, they still have my balance as $425 the amount they said they would chargeoff if I paid the balance in full, I hope they dont rescind the offer, but maybe on a chargeoff it takes a few days to update

IIRC dont I have something like 100 words to dispute or to put in my 2cents in my credit report regarding whatever unfavorable mark may be on there??

You can add a comment on your credit report if you dispute an account.

 

[The Grinder]

If you pay what is agreed to with the creditor that you can pay to settle the debt, that should not affect your credit score. Make sure you get any agreement in writing and that it is to be noted by the creditor on your credit report that you “paid as agreed.”

Quincy I received official letter confirming the terms, like you stated above, per the letter it will be reported to reporting agencies as " Paid in full for less than the full balance" and it will also be reported as a "charge off" . Is this desirable? Now I have ALL credit cards PIF, per a website called Creditsoup, my score is 787 when just a few months ago it hovered aroound 660, but I had some old balances from 2013 that dropped off in the last 2 months

 

[Taxing Matters]

Quincy I received official letter confirming the terms, like you stated above, per the letter it will be reported to reporting agencies as " Paid in full for less than the full balance" and it will also be reported as a "charge off" . Is this desirable?

It's not as good as showing that the debt was paid timely, but it is better than the report showing an open delinquent debt. At least other creditors will see that this debt is no longer something you will have to pay, meaning you have more funds to pay for other things.

 

[quincy]

Quincy I received official letter confirming the terms, like you stated above, per the letter it will be reported to reporting agencies as " Paid in full for less than the full balance" and it will also be reported as a "charge off" . Is this desirable? Now I have ALL credit cards PIF, per a website called Creditsoup, my score is 787 when just a few months ago it hovered aroound 660, but I had some old balances from 2013 that dropped off in the last 2 months

I would try to negotiate with the creditor to have a “paid as agreed” notation rather than their proposed notation on the debt. And I think it could be better for you to maintain the account as it is but pay more than the minimum per month, reducing the balance to zero over a few months rather than trying to pay less than what is owed to settle the debt.

You could speak to a credit counselor in your area for advice, though.