Thanks to the stimulus payment and some savings, one charge card that was charged off has been paid in full. Next week, a balance transfer request should post and pay off the balance on a second charge card that is charged off. There is still a question whether this will get the lawsuit dropped by the collections attorney.
Speaking to the collections agency, they tell me that I owe roughly $400 more than what their client's website says I owe. I figure that this is to cover collection fees on top of any commissions they would earn for the amount of money they collect. Rather than make payments through the collections agency, I made payments directly to the credit card company, which will show $0 balances. I did this partially because you can't trust attorneys. And, partially, I did it to see what they would do. I have an agreement with the credit card company, not the collections agency. If I pay the debt in full to the credit card company, I wonder what happens to the collection agency fees? I did look up the membership agreement. There is a clause in there about paying collection fees. But, I'm curious if they will enforce it or have their collection attorney drop the lawsuit. I'll call the attorney once the balances are both zero and inform him that I've paid off the balances. I'll also call the credit card company and ask them if we are square.
One thing I am angling for is to get an invitation for the Optima card, which is a credit-building card with the same company. According to the offer, I would be approved for a credit line of $1000. If I can get that, it would be well worth the extra $400. I should like to resume my relationship with the company. The reason my account fell delinquent was partially due to third parties using my cards and stiffing me with the bill. We just weren't prepared to pay so much money at once. I won't be making that mistake again. No more authorized users other than Mrs. TWM.
If, on the other hand, paying the balances in full to the credit card company causes them to call off the attorneys without insisting on collection fees, then I could live without the Optima card invitation. According to credit card forums, the company is very forgiving so long as you pay what you owe. It is possible I may qualify for a regular account within a few months.
Despite the new age of crypto credit and money that is dawning, I am still interested in having good traditional credit and opening up credit lines. Being able to borrow against crypto is great. However, I do not have enough collateral for meaningful loans. For example, I do not have enough collateral to be able to buy a car at 1% interest. It will take some time to reach that level. In the meantime, I still have to play the FICO game. That means that I need good credit to qualify for better interest rates. Paying off these delinquent accounts helps towards that goal.