Best way to handle bank chargeoff from overdrafted account

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protechig
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Best way to handle bank chargeoff from overdrafted account

Postby protechig » Mon Oct 05, 2015 3:38 am

After reviewing my girlfriend's credit report with her, we figured out that she has a charge off for an old bank account that was overdrafted $112. It's been on her report since February of this year and outside of a few late payments is seriously affecting her credit score and her ability to apply for new credit.

I want to get this taken care of for her ASAP, but I am wondering if it's worth it to reach out to the credit union for a PFD, or if we should just pay off the debt so it shows up as paid sooner.

Any opinions?

Thanks,
Zach


Vermonster
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Re: Best way to handle bank chargeoff from overdrafted account

Postby Vermonster » Mon Oct 05, 2015 9:40 am

Is this on her credit report? Normally these don't show on a credit report as they are not a "line of credit"
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protechig
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Re: Best way to handle bank chargeoff from overdrafted account

Postby protechig » Mon Oct 05, 2015 8:37 pm

Vermonster wrote:Is this on her credit report? Normally these don't show on a credit report as they are not a "line of credit"

Yes it is showing on her credit report as a "Charge Off".

Kevin86475391
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Re: Best way to handle bank chargeoff from overdrafted account

Postby Kevin86475391 » Mon Oct 05, 2015 8:48 pm

protechig wrote:I want to get this taken care of for her ASAP, but I am wondering if it's worth it to reach out to the credit union for a PFD, or if we should just pay off the debt so it shows up as paid sooner.

Any opinions?


My opinion is yes, ask for the PFD. The potential benefit - even if you're unlikely to get it (not saying you necessary are, but even if you are) - significantly outweighs the marginal positive of paying it off slightly sooner. If they don't accept the PFD, you should still pay it anyway IMO, but at most that will only delay it a month or two; whereas you'll have very substantial gain if they accept the PFD. Definitely worth asking IMO.

augiedog
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Re: Best way to handle bank chargeoff from overdrafted account

Postby augiedog » Tue Oct 06, 2015 2:23 pm

Vermonster wrote:Is this on her credit report? Normally these don't show on a credit report as they are not a "line of credit"


Anytime your checking account is over drafted your bank can report that to ChexSystems, which is a credit bureau. Some banks will deny you from opening a new checking account with just one negative remark. It will also prevent you from writing checks in some cases, such as at the grocery store or Target.
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