Credit Situation , Chex Systems , Collection Agency !!!

Here is my current credit situation. Chex systems, Collection agency etc.. Need help thank you!?

I have about 1,500 in debt on a bank of america credit card. Additionally I owe bank of america about 650 over 2 different checking accounts and a savings account.A collection agency is offering me a 70% settlement on my credit card. Is this the best bet??

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I tried calling BofA to see if I could pay them directly. Is there a benefit to paying the bank directly? Or does taking the settlement make the most sense?Bank of America said they'd accept the aprox 650 for the checkings/savings accounts but would never open an account for me again.

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Fine. If I paid in full, and still had a credit card debt would they have to remove me from Chex Systems?(they added me)..If I settle with the agency, what should I ask for(in writing) in return for payment? Paid in Full, submission to the 3 credit bureaus saying I've paid etc..After I pay the CC, and the accounts and get off Chex what must I do to recover asap! I want to buy a house in about 5 years. Thank you all, I know its alot of question

The Answer : Well , if you can pay off the checking and savings accounts with Bank of America, then by all means do it. While you'll still be on ChexSystems, there's a workaround for that, the main thing is that those debts'll be paid, which is the most important part.

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The collectors are settling for 70%, which is about $1050. Now, that may sound like a good deal, but here's what you may want to keep in consideration. If you take them up on it, the report will still show the negative account, and it could include a message such as "paid as settled" or comething to that effect which would actually be worse than if you paid it off in full. What you should do is neogtiate to see what it would take to get it removed from your report completely.

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That's the only thing that will help your credit at this time, getting that negative history completely removed from your report. The collector doesn't HAVE to do it, but with careful negotiation which I've provided links below. It's possible. It takes 5 years to get off the ChexSystems database once it's paid, but like I mentioned earlier, there's a workaround for this. You can do one of 2 things.

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First, you can click this link===> http://www.secondchancecheckingaccount.n... to find banks in your area that may open a checking account even if you've been on ChexSystems, or you can click this link to open a checking account alternative called AccountNowhttp://www.accountnow.net/default.aspxIt works just like a checking account. It allows you to have your paycheck direct deposited, conduct online billpay, and it comes with a master card debit card, some of the basic features of free checking that most banks offer.

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As for rebuilding credit, your best bet will be a secured credit card. They're easier to get than regular cards because you have to place a deposit that's used as collateral to get the same amount in a credit line. But this is not always bad. Since you're wanting to buy a house, chances are you're going to have to start saving up for the down payment and/or closing costs, etc. ,

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a secured card allows you to save money while building credit at the same time. With a secured card you control the credit line by adding to the deposit, now that doesn't mean that you're going to use it in this case, what you would do is "custom build" a high limit credit card that will help your credit when it reports because the higher the limit, the more avaialble credit you have against what you owe altogether, which counts as 30% of your score.

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And the best way to use the card to treat it as if it had only a $50 limit on it at all times so to manage the balance on the card. You should barely charge just enough to where it can be paid off on time every month for it to report activity, that's it. And while doing that, increasing the credit line as much and often as possible. Usually after a year, the card either converts to a regular card or a better card's offered altogether, and more importantly the deposit's no longer needed and it's given back WITH interest.

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So after it's all said and done, you would've rebuilt your credit, come out with another regular credit card, and saved up a lump of change to use towards a down payment or whatever. It's a win-win-win situation altogether.