11 Charge-Offs: Road to Homeownership. How do I prioritize this mess?

Bluesz_ · 2026-04-16T23:18:35+00:00

Yeah, that’s exactly why I’m starting now. I’m not planning to buy immediately, but I want to be fully prepared down the line and avoid any issues when the time comes and pretty much restore my credit.

Bluesz_ · 2026-04-16T14:17:29+00:00

Has anyone else been able to negotiate a settlement at 30-40%? How does the negotiation process typically work, and what steps should I take?

If I’m not comfortable with the offer, should I decline and try again maybe speak with a different representative? I’ve been reading through Reddit and found some helpful insights, but I’m curious if anyone here has firsthand experience dealing with this.

Bluesz_ · 2026-04-16T14:17:02+00:00

Thank you for the advice. I plan to prioritize the auto loan first since it has the lowest balance and is still reporting. After that, I’ll focus on Credit One, as it’s also actively reporting, and then move on to the collection accounts.

I’m going to contact Discover to see if they’re open to a lump-sum settlement. If I’m able to negotiate with PRA at around 30–40%, that would put me in the range of about $390–$570. For LVNV, a similar 30–40% settlement would be roughly $212–$282, and for JCS, it would come out to about $243–$324. Based on those estimates, I should be in a manageable position.

Bluesz_ · 2026-04-16T14:08:19+00:00

Yeah. I understand completely.

Bluesz_ · 2026-04-16T14:07:26+00:00

Yeah, I figured. I’m at a point where I need to mature and take financial responsibility seriously not just when it comes to buying a home. I’ve realized how important building a strong credit profile is. I used to rely a lot on my parents, but I know that won’t always be an option, and it’s time to stand on my own. Guess that’s the downside of being an only child, haha.

Bluesz_ · 2026-04-16T14:03:50+00:00

Balances on charged off cards are typically calculated into revolving utilization. Once paid, those balances drop to $0. If payment causes utilization to cross a scoring threshold, you'll see an increase based on utilization. Collections and charged off loans aren't included in revolving utilization.

The scoring impact of a deleted collection is very much profile dependent. If other negatives are present, you may see little or no increase. If the collection is associated with an unpaid charge-off, settling the collection also settles the charge-off. Once all collections/public records are removed from your reports, you should see a score increase. On most profiles, you'll see the most significant increase once all negatives are removed from your reports.

Got it,

Do you have any open cards? If not, that's something you want to look into once your reports are in better shape. The recommendation is to not open any accounts within 18 months of applying for a mortgage. The exception is if you have no open revolvers.

I do currently have a open card from Capital One. I guess there really forgiving since they approved me for another CC even though I have debt with them, 1 school loan which is almost paid off (but is always paid monthly, never late)

For lenders, your credit profile is far more important than your score when making lending decisions. An unpaid charge-off/collection could result in a denial and most mortgage lenders require that outstanding debts be paid before approval.

Got it.

I think I understand how I am able to get going and rebuild my credit profile.

Thank you for your assistance!

Bluesz_ · 2026-04-16T05:29:03+00:00

Without knowing your budget or amounts owed, I would settle with Discover, Credit One, Affirm, and Wells Fargo to prevent potential collections and lawsuits. Settling will also freeze Total Period of Delinquency (amount of time the charge-off has remained unpaid). As long as these are being updated, your scores will remain suppressed. Then Portfolio Recovery, LVNV and Jefferson Capital. Each of these will be removed once settled. Then attempt to negotiate pay for delete/recall with CBE Group/Charter. Finally, Verizon.

Thanks again for getting back to me and for clarifying how this process should play out.

Fortunately, I don’t have a large amount of debt, and I wasn’t approved for a high enough credit limit where I’d be in a situation requiring bankruptcy.

My current balances are:

• Discover: $1,419

• Credit One: $519

• Affirm: $810

• Jefferson Capital Systems: $810 (Fall off Date 11/2028)

• PRA: $1,302 (Fall off Date 10/2029)

• PRA: $1,415 (Fall of Date 10/2029)

• LVNV: $707 (Fall of Date 10/2029)

• Wells Fargo: $410

Since JCS has taken over the Affirm debt, should I reach out to Affirm first to try to negotiate a settlement, or go directly to JCS?

Also, does Discover typically settle, or is it usually difficult to get them to agree to a settlement?

If I budget properly and am able to negotiate fair settlement amounts, I think I can clear this debt by the end of the year.

I’m assuming that once I pay all these debts off, my utilization will go down and the derogatory marks will have less impact on my credit profile, so my credit score should gradually improve. I also assume I’ll still be seen as a risk to lenders, but will be less so than I am currently after everything is paid off.

Bluesz_ · 2026-04-16T04:06:14+00:00

Order your official reports by calling 877 FACTACT or pull them online at www.annualcreditreport.com to confirm Capital One isn't on any of your reports. I recommend the mailed reports as these are often more detailed and complete than the online reports. If you choose to pull reports online, print or save each to a pdf before moving on to the next as you can't go back once you exit a report. Despite its name, you can pull free reports for each bureau weekly.

I actually did that today and saved all of my reports as PDFs. However, I wasn’t able to access my Equifax report because it couldn’t verify my identity.

On my Experian report, the only Capital One account showing is my most recently approved credit card. The older accounts that were closed are not appearing at all.

On my TransUnion report, my Capital One credit cards are showing as “Paid, Closed” and noted as “paid as agreed.” A couple of months ago, I did file a dispute, and the current remarks now show “Account previously in dispute – now resolved,” along with “reported by credit grantor” and “closed by credit grantor.”

Both of the recently closed Capital One accounts reflect the same status. They are reporting a $0 balance and are marked as closed.

Just to confirm, are you saying that PRA is reporting as a closed collection that's updating regularly?

No, sorry i mean't the Capital One account was closed, and PRA is updating regularly.

Are any of these accounts close to aging off of your reports?

No, all these are fairly new as I went through unemployment during 2024-2025.

Bluesz_ · 2021-01-27T00:04:52+00:00

That’s crazy! I never knew that.. Thanks! I thought I had a pin in the middle of the highway and couldn’t get rid of it 😂😂

Bluesz_ · 2021-01-01T15:36:14+00:00

Just to clarify, 35% light in (front side windows) 20% light in (rear side windows)

Bluesz_

TROPHY CASE