Charge-Offs or Collection Accounts...which is worse.

They are both bad and you don't want either. I really don't know if one is worse than the other. Usually a charge-off and collection account go hand in hand as the creditor will charge it off and then give it over to a collector. A double whammy.

The original account that was charged off has been completely removed from my credit report. There is nothing about it anywhere. The only thing now is the collection account.

Did u dispute this charge off acct with the bureau? Or did it just go away? Has it been over the 7 years? That might be why it's gone now.
Ang

Yeah a charge-off shouldn't disappear unless its over 7 years or you disputed it.

I didn't dispute the charge-off...it was legitimiately charged off about 3 years ago. It then went to a bunch of CAs. Just in the past few months it went to FMS and I have been making payments through an agreed-upon payment plan with them. Each month I pull my credit report for review and saw the charge-off account is completely gone (like it never existed) and the collection account is there. In the details, the collection account states it is Citicard, lists the accurate amount and says "paying as agreed."

Well at least they're NOT both showing up! So I wouldn't worry about it too much!
Looks good that ur paying as agreed!
Ang

So I guess it means that although there is collection activity going on on the account, you are sticking to your payment arrangement? I would think with a charged off account, nothing is going on with that one.

I have stuck to the payment arrangement without any problem with FMS (they have been fine to work with). I don't know what happened to the charge-off...I know the same account isn't supposed to be listed twice. I check my report once a month (roughly) to see what is going on.

I don't know...I guess I'll just leave it alone.

It's good that they aren't both on there that will help your credit score in the long run. I was always told a charge off was worse than a collection account. Don't quote me on that though and I'm sure someone knows more than I do about this matter. It seems that if you are making payments on a regular basis that can only help you :)

I think you answered your own question about the charge off. A debt cannot be reported more than once on your credit report. If a collection agency is reporting it, the original creditor is supposed to delete it from their reports to the credit bureaus.

Hummmm.... well if this is true than what do i do? Because my Chase charge off AND CACH are BOTH on my credit report and i've disputed both! Both were reviewed and neither deleted!
ANg

Actually they are allowed to report twice under certain conditions.If the original creditor retains ownership of account,both them and collector are allowed to report.If the debt is sold,oc would show zero balance/sold in their account and collector would take over.Since oc dropped theirs completely,they have probably worked something out with collector's agency.

Morning Cajun!
Think i could dispute my Chase acct again and see what happens?!?!
Thanks in advnace,
Ang

Ang, remove personal info and account number and post it here so I can see it.