I have been working on cleaning up credit for a year now. Have had good success at rebuilding and correcting credit report. I read THEN that I should not pay off CO's because it will, I guess re-age them. So I did not pay them when I could have. I left them alone. Now DH and I are getting ready to house shop and I have 2 CO's that are still present from from 2004. They total about $900. One with Cap 1 and one with Credit 1. I left credit one alone but in Jan of this year I called Cap 1. I asked for a balance to pay acct in full. Act was already closed by grantor on my reports. They said $207.41. We discussed them reporting the acct as paid in full if I paid this amount and removing the CO from my record. They agreed. I put this in writing along with the check and received a letter back from them stating... "This is to confirm your payment of $207.41 on 1/4/2007. and your balance has been paid in full. We will advise the following credit reporting agencies within 90 days that full payment has been received." They did not. My fico still reports that the account is bad/charge off. I called them recently and they said they marked the balance to $0 but that the charge off status stays. Now when I called the firs time they didn't even TELL ME about a charge off amount!!! $282.00. All they gave me was the current balance of $207.41. And the acct history changed in my last report to show that it is a new charge off in May. I am disputing THAT with the CRA. Cap one says it was a mistake and will change it. So I guess I have two questions. 1. Is there anything I can do with the letter I currently have from them to get them to remove the C/O or should I just pay it. (remember I will be mortgage shopping) I've disputed with the CRA's and all three said it was correct as is. 2. I've heard that you should not pay off CO's before a home loan - as they will have you pay it off at closing. I just don't know what to do. The Credit 1 charge off is rom 04 also and is about $700. I have not disputed anything about it yet. Because we'll be mortgage shopping soon I just don't know the best way to proceed! My current FICO is 630
