03 Nov 2013

Will tradelines work with charged off and unsettled accounts?

When people ask questions like “will X happen if I buy tradelines,” it forces us to make statements for which the Federal Trade Commission may want to punch us in the face (legally speaking), because:

tradelines and collections and chargeoffsSo, since we can’t predict the future, especially since we haven’t seen your particular credit report, I am going to preface my answer with one huge it depends.

At the end of the day, your credit score will increase if adding positive tradelines to your credit report is the only thing that changes about your credit report (ruling out new negative items, like missed payments, new collections, etc.). There’s nothing that can change that. However, you can mitigate this benefit in many ways, such as:

  • missing payments on current accounts when the trade lines hit
  • going into collections when the trade lines report
  • getting an account thrown into charge-off status right when the tradelines appear

These negative items, among others, usually require credit repair prior to adding tradelines. So, the real question is will a particular tradeline or group of tradelines increase your score so much that the negative impact from charge-off or unsettled accounts is not economically significant?

With that rephrased question, the only answer is possible after a thorough credit report analysis of your credit report, because no charge-off collection account is the same and will have different impacts on your credit score depending on a multitude of factors. For example, how old was the collection, what was the date of last activity, was it paid off or not, was it settled for less than the full amount, etc. Depending on the answers to those questions, the collection or charge-off account will have different impacts on your credit score.

Only until you answer those questions can we determine whether trade lines will help.

You should reach out to us for full credit report analysis for a reliable answer to this question rather than a general hypothetical one. We look forward to speaking with you.

4 thoughts on “Will tradelines work with charged off and unsettled accounts?”

  1. Hi,Will trade lines work with various charge-offs, and while those charges-offs are not paid off nor settled? Also what is your recommendation?Thanks,Russell

    1. Russell,Like many things in credit and credit restoration, it depends. Actually, I think you could answer 99% of [credit related questions][1] with “it depends”, so I am going to add some factors to your question so I can give you some real answers.The first part of your question is [will tradelines “work”][2]? The reason it depends is that you could have a 400 credit score, looking for a 720 mid score to qualify for some exclusive line of credit. In that case, it’s probably [not going to work][3]. But, depending on the next factor, it could…You mentioned the active existence of unpaid charge off accounts. This could be the worst thing on your file or irrelevant. The most important thing to consider about charge offs is how recent and actively they report. If it just reported last week, even if the amount is $1.00, it is killing your score. We had a client, with otherwise perfect credit, with one medical collection for $76.00 and his score dropped from 788 to 598. On the other hand, we work with clients all the time that have negative items such as charge offs, collections, late payments, etc. The trick is finding that sweet spot between a recent account that must be handled and an older account that is not actively being pursued or reported to the credit bureaus.I know I answered your questions with a bunch of hypothetical topics, but I would have not problem looking at your specific situation in more detail. I suppose the best way would be to schedule a time to speak and get a recent three bureau credit report so we can review it with you.You can call us at 800 431 4741 or email us at info@superiortradelines.comThanks,[1]: https://superiortradelines.com/tradelines/how-do-tradelines-work/[2]: https://superiortradelines.com/tradelines/do-tradelines-work/

  2. I have 3 charge offs that has been paid out and a bankruptcy. Can I get tradelines and not having to worry about my situation.

    1. Probably not. I doubt it would work. We would do a credit repair analysis for free if you call us at 800-431-4741 or email us at info@superiortradelines.com or get started at https://superiortradelines.com/start/

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