How long does it take to rebuild your credit after paying off a charged off card?

I have a credit card that has been charged off, with a balance of $850 the limit on the card was $350.Sad I know. Im working with the company to get it paid off, someone told me it would make my credit score go up from 550 to 650 in about 60 days. Does anyone know if this is true and if not about how long will it take to rebuild my credit?|||No.....a 100 point jump in a FICO score so soon after a charge-off will not happen...sorry. Debt collectors will tell you anything you want to hear to get your money from you.





- When a credit card is charged-off as bad debt, you need to understand that the damage to your credit is already done and there is no undoing it. Don’t make the mistake of simply cutting a check to whatever collection agency has the debt for the charge-off and assume that your credit rating will be magically restored...Doing so will not remove it from your credit reports. It will simply be updated to a "Paid Charge-Off," which, while slightly better, is still a seriously derogatory item. Per the Fair Credit Reporting Act, a charge-off, whether paid or not, can remain on a consumer's credit reports for up to seven years. This does not mean that you will have bad credit for the entire 7 years though. The main damage of a charge-off will last at least two years....after that you score will start to go back up.





If you're going to pay off old-charged-off debt anyway, then you might as well negotiate the lowest, rock bottom settlement you can possibly get, being that the negative charge-off notation is going to stay for 7 years on your credit report, regardless of whether the charge-off is paid or unpaid. ...Offer 25% at start from there.





Mail them a vaguely worded statement like:





I am willing to settle this matter for 25% of the original amount. This is in no way an admission of this debt, but rather an attempt to settle this matter. Your firm must send me a written agreement on your company's letterhead that you will accept this amount as "payment in full" and that this issue will be settled. Upon receipt of this agreement, I will mail you a money order for this amount.


- Get all terms of any settlement deal you reach with debt collectors IN WRITING BEFORE you give them your money. This letter should state the settlement amount and that the account will be “paid in full” upon receipt of this amount from you. Keep the letter in a safe place. Never accept settlement deals over the phone that are not backed up in written terms. If you don’t, the debt collectors will deny that any settlement was ever made once they get your “settlement” money and will come back demanding more money from you.|||The truth of the matter is that credit related issues can be very complicated and sometimes confusing. So, you are not alone with your question. I found a great site when searching for an answer to your question that I think you will find useful:


http://www.redfoxcredit.com





Hope this helps!