PFD Success?

[goofysteph]

SUCCESS (I think)!!

I wrote to Citibank and asked for a PFD. Even though the account is currently in good standing and paying as agreed, I had a gazillion really late payments due to my enrollment in a DMP (I have: 2 60 day lates, 2 90 day lates, and 3 120 day lates). I needed those OFF my credit report ASAP because we are trying to buy a new home. I offered to pay the full amount owed, if they would delete the entire tradeline. I have enough other untarnished credit not to take a big hit by the deletion of this particular account. Anyway, here's the response:

"As to your offer to pay the balance in full in exchange for the deletion of the account from your credit profile, enclosed is a self-addressed envelope for your convenience in providing your payment. Upon clearing of the payment from your bank, we will make the necessary request with the three major credit reporting agencies to delete the account from your credit profile."

That sounds pretty successful, right? I can't believe it!! This will delete all of the late payments. Woo hoo!!

Or am I missing something? Please tell me before I send off my check...

[Lian]

Not really. You don't want the ACCOUNT deleted, only the old delinquencies.
Deletion of the account will cause you to lose its CL in your % util calculations, and its age in your avg age of accounts calculation. You have an account in good standing that is usually desirable to retain.

Additionally, if the account is now current, how do you have a delinquent debt upon which to pay in exchange for deletion? Are you just offering to pay the current balance to $0?

[goofysteph]

Originally Posted by Lian

Not really. You don't want the ACCOUNT deleted, only the old delinquencies.
Deletion of the account will cause you to lose its CL in your % util calculations, and its age in your avg age of accounts calculation. You have an account in good standing that is usually desirable to retain.

Additionally, if the account is now current, how do you have a delinquent debt upon which to pay in exchange for deletion? Are you just offering to pay the current balance to $0?

I understand it's not the MOST desirable situation, but I have already asked for JUST deletion of the derogs, and they were not willing to do that. So, my next step was to ask for them to delete the entire account. This result is still better than to have several 60, 90 and 120 late payments on my credit report. From what I understand, a single 120 late payment is the equivalent of a BK or judgment. Removing that should significantly boost my credit score, regardless of whether I have to delete the account to do so.

I also have a very lengthy credit history with several other open CCs. So I'm not concerned that the loss of this account will negatively affect that part of my score.

And you are correct, the account is currently in good standing. I have no delinquencies, only late payments on my report from over a year ago. I offered to pay the current balance to $0, in exchange for deletion of the account (and the late payments) and they have agreed to do so.