Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

Charged off credit card?

If you have one credit card that was charged off how bad will that hurt your credit, for getting things such as a house or a new car. That is the only thing bad on my credit, but it is also the only thing that show on my credit. i have never had anything in my name. The credit card had a limit if $500.00 and they are saying that i owe @1200.00 now. How bad will this hurt me?

Answer Question

Asked by Anonymous at 12:29 PM on Oct. 7, 2008 in Money & Work

Answers (5)
  • Well creditors have always taken into account for things on your credit that are 30 days or more passed due. However, before they would work something out with you. With the economy the way it is now, I can't say how bad it will hurt you if it will at all. If you have a good score then they may still work with you. If you are looking to buy something, I would check with the creditor. The only real way of knowing is by testing it out.

    Answer by tpalmer at 12:36 PM on Oct. 7, 2008

  • if you intend on trying to pay it back contact the original creditor. DO NOT talk to any collection agency they may have sold it off to. They write it off & take a tax break on it. The collection agency tries to collect for their own profits and nothing you give them goes back to the original creditor. Also remember that sometimes, having no credit history is bad for you too. I seriously doubt its gong to affect you getting a car. They are way more lenient about things and also I had a repo on my credit & still got another car. No problem. Home loans are a little more tricky. Not having any credit history is a bad thing. You need at least some good history to show them you care capable of handling credit responsibly. (i have owned 2 homes and had medical debt when I bought one of them & they didnt care but I also had some good credit history at the time..repo happened yrs later with a divorce)

    Answer by Anonymous at 12:43 PM on Oct. 7, 2008

  • edit: "care" should be "are" sorry typing too fast!

    Answer by Anonymous at 12:44 PM on Oct. 7, 2008

  • It will hurt it your credit BUT if it's paid off it will be deleted from your credit report after a certain amount of time. You'll still have a deliquency as long as it hasn't been paid off and if it's been paid off like I said, it won't go away until, I believe 3 years? It is never a good thing. I couldn't get approved for loans or credit cards b/c I had ONE deliquency which was only $300. You can also call the creditors they sent it to and ask them to make a setllement and they will go a lot cheaper than what you actually owe. After I paid off the $300, I got approved for credit cards. It is best to only get 3-5 credit cards and to pay it all in full each month. I know with capital one, they get your credit score up 15 points if you use the card at least once a month, for 3 months and it's paid each month. I had NO credit and now my score is at 630. Not great, but it's a fair score.

    Answer by SKARISKARA at 2:53 PM on Oct. 7, 2008

  • It will hurt your credit but there are always ways around it. To be totally honest I just finished the book total money makeover by Dave Ramsey and I am hooked on his no debt plan. He makes a lot of sense gives you freedom and you dont even NEED a credit score using his financial plan. As for buying a house, you can put away a "house payment" in to savings for i dont know 10-12 years then throw that sum in a high interest cd let it sit for 3 years and purchase a house CASH! No mortgage payment. I encourage you to read it. I have crap credit and I look forward to being debt free in less than a year and free from the slavery of credit!

    Answer by humaniterian87 at 11:53 PM on Oct. 7, 2008

Join CafeMom now to contribute your answer and become part of our community. It's free and takes just a minute.