Cap1 Question

[kmcbarne]

I have a charged off Cap1 acct in the amount of $951 on my report, set to fall of in 2010. This is the only revolving account reflected on my FICO's, and the simulator says that paying this off would raise my score 50-100 points (according to FICO, it's affecting my utilization and past due balance amount). I was thinking of paying it off as this would be a nice score jump. I know that paying won't reset the fall-off date, but will it actually increase my score in this case? Also, has anyone had any luck getting Cap1 to remove CO (or derog records) in exchange for payment? Basically so the account wouldn't be deleted, but would show as a positive closed TL? Thanks

Message Edited by kmcbarne on 01-28-2008 05:11 AM

[ozgirl]

I had a similar situation but on an account that would have fallen off at a much later date. So paying the charge off actually bumped my score up; however, from what I have read here the opposite can happen and/or you may see no improvement. Oh yes, and I paid Cap1 directly--not their collection agency.

Than being said, I believe that it is better to have your account reflect a paid in full after the charge off rather than just let it sit there and grow mold--after all they are legitimate charges.

In this situation (a 5 year old account) I would surmise that Cap1 has "written off" the loss long ago so I don't know how that figures into the equation. In my case, the company had not taken the "write off" so my account simply shows paid after charge off. As an added bonus, the lates etc.. associated with the account were deleted after I paid it off.

Perhaps someone out there with more knowledge can give you better insight to how your actual score will be affected. I know that the simulator is not always "correct."