How to go about this ?

[tommypic]

I am wanting to get a loan on my home to pay off all cards , home is free and clear . I want to know how to go about paying this . They will settle for less but will it hurt my credit ? its not to good now TU 548 XP 565


Citi
06/11 03/97
03/11
$3027
REV
$3027
MIN $131
$623 99 2 2 2 DELINQ 120+
XP/TU
Late Dates: 6/11-120, 5/11-90, 4/11-60, 3/11-60, 2/11-30
ACCOUNT CLOSED AT CREDIT GRANTOR'S REQUEST

[Hal Jordan]

We need more information.

Is that credit card in default? Charged off? Collections?

If they will take less you'll want to negotiate a pay for delete with them. Just write up an offer..

Example letter:

"I have reviewed your statements and gone over my records and I would like to save myself all of the time and effort it would take to dispute this matter to fruition so I would like to try and settle this debt immediately by offering $____ as payment in full.

I am willing to pay ($___) in return for your agreement to remove all information regarding this debt from all three of the major credit reporting agencies (namely Equifax, TransUnion and Experian) and to also consider this debt as 100% satisfied and paid in full once you have received the $___ payment from me.

If you agree in writing to the terms of this settlement offer, I will be more than happy to immediately send you payment for ($___) via your preferred method of payment."

You can of course modify it to fit your needs. Such as taking out the part about disputing etc..

[Lian]

First, has your state statute of limitations expired on the debt?
You might want to know whether the debt is still within SOL before you attempt to negotiate terms on a PFD. Second, has the debt been charged-off or referred for collection? If not, your offer may spur additional actions, and thus credit reporting, on their part.

An observation on offering a PFD that is for less than the full debt.... You are requesting two concessions on their part. First, that they delete any prior derogs reported on the account, and second that they accept less than the full amount of the debt. If they decline, are you willing to drop the settle-for-less provision, and accept only CR deletion? Is saving $$ your primary goal, or is obtaining CR deletion? You may not be able to get both.