Fixing Credit Score - Charge Off

[realmike15]

I have a Charge Off from a couple years ago on my report. Shortly after getting my first car, I applied for a Credit Card at my Bank and was given a card with a $2,000 limit.

Over the course of that year, I had lost my job and had a hard time finding a new one. During that time, I used cash advances in order keep making my car payments so I wouldn't lose it... as well as my car insurance to keep it legal.

I eventually found a job and paid off my car, but with the lack of payments to my credit card during those 2-3 months the damage was already done. Not long after that, I moved out of my parents house and into an apartment.

Having to pay rent, utilities and car insurance, I've never really managed to save up enough money to pay off the debt. It also seriously effected my credit... my 3 current scores are: 581, 625, and 608. The total debt to the credit card including all the additional late fees is $2,695.

Bottom line, I just cannot afford that. The record of the debt will not expire until 2015. Not that I need to buy a house or anything... I'd like to rid myself of this debt.

Option 1:
Pay off the debt. I cannot afford the whole debt... but assuming I could talk them down. I've heard that I need to make sure the debt is completely removed from the records, if I decide to pay it off. What exactly do I have to ask them to do to have this done? If I pay off the debt, I want it erased completely.

Option 2:
Find another Credit Card company to give me a chance, and prove I can be more responsible. The problem is, every company I look at wants a $100 application fee, and monthly payments. A lot of these companies require you to link your bank account to the card as well. I don't mind linking my bank account as a sign of good faith... but I DO NOT want to pay them $100 just to open an account. Are there any cards out there for me?

Thanks, any help/advice is appreciated.

[chane]

It's going to be difficult to get them to settle on the debt and remove it from your credit report. But, if you can get them to do it, that would be great.

It will be easier to dispute and get removed from your credit report if it is paid though. If you can't get them to agree to remove it once it's paid, you may want to pay it off and then try to dispute it to get it removed that way.

As far as "bad credit" credit cards...they are all pretty bad terms. You can check these out to see if there are any that aren't too bad. Bad Credit Credit Cards