Payment Plan on credit report
Date: Mon, 07/23/2007 - 19:44
What impact does a "Payment Plan" have on my credit score? It is better than having a Charge Off, correct?
"Charged off" is a negative item showing that your account is in
"Charged off" is a negative item showing that your account is in default since a long time and the credit is not getting the money that you have borrowed. They will update your file with the bureaus that hurts the scores.
The best thing you can do is to stop the creditor from reporting a negative item to the bureaus. You need to work out some arrangements and improve your credit rating. If you are able to fix a payment plan, they will report the item as "Paid" or "Paid as Agreed". This is much better than a "charged off" reporting and your future lenders will understand your responsibility of taking care of the debts.
