paid charge off
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Posted by charge off
(67.83.83.151) on March 10, 2003 at 14:36:03:
Hi, I was told that my credit was not good enough to quality for the lowest rate when I was applying to refinance last week. I never had a problem with my credit before so I checked my credit report and credit score from equifax. Here's what I found. I have a paid charge off account with American Express. What happened is that about 2 years ago (may, 2001), we moved into our current house. American express bill was still sent to my old address. I didn't get it hence didn't pay the bill. Coincidently, I stopped using the AE card. So I didn't expect any bill from them. Last year in Oct. when I applied for refinancing the first time, I was told that I had unpaid bill with AE by my banker. So I called AE and they redirected me to a collection agency. I paid the bill ($200+) in full on the phone right away to the collection agency. Since my banker still gave me the best rate he had (5.5% at that time), I thought the AE account was taken care of. So this time when I was told of the credit problem, it was quite a surprise. After I got my credit report and credit score (688), I visited numerous sites on the internet, I realized I made a big mistake paying off the balance too quickly and too easily. Now I lost my leverage to bargain with AE. I called AE, they wouldn't change my account status to something neutral. So I guess I am stuck with paid charge off on that account. Also because I moved, other creditors were not able to contact me when the credit cards they issued were about to expire. Those are very old credit cards and I don't use them at all. I thought I had called the creditors to cancel them. But according to them, I didn't call. Anyway, good news is I don't have any balance on those cards. Bad news is I have 8 "closed by credit grantor" accounts. Now here's my question:
1. Is it still possible to convice AE to change "paid charge off" account status to something neutral? I am not good at negotiating. I guess I did a poor job when I called them. Can anyone give me some advice on how to negotiate with them? Can future lenders see the amount in question involved in the AE account? I cannot find it on my credit report. I am thinking maybe they won't take it too seriously because the amount was only $200+.
2. How bad are those "closed by credit grantor" accounts? I tried to tell the creditors to change them to "closed by consumer or closed at customers' request". None of them would do so. Can I tell the credit bureaus that the accounts were closed because the cards expired and hope they would add that comment to my credit report?
3. What if I do nothing? As I said, my score is 688 which isn't really bad (700+ is considered excellent). My household income is $200k. So I don't have a debt problem. Is it possible when future lenders see my income, they will understand that it was a one time mistake and ignore my paid charge off account? Thanks. Your help is highly appreciated.
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