Capital One Charge-Off..pay it or leave it?

Anonymous · ‎02-20-2015

Ok, so I am wondering if it is even worth it to deal with my charge off right now? I owe $639 on a $500 credt limit and it was charged-off June of 2014. This actually makes me want to punch myself because I'm thinking if only I started my credit repair journey a bit sooner... And of course I messed around and F'ed with the wrong company, so I am realizing my chances of a Pay to Delete deal are non existant.

Anyway, I know people say it is good to satisfy any debt, especially when applying for major loans. But I will not be purchasing a car nor a house anytime soon.

It seems the short term gain is basicaly null for satisfying my CO. No, score increase or anything like that from what I have read. But what other ways would it effect me if I payed it or left it?

My score is sitting at 600 right now and I am expecting a decent jump from the removal of another small debt that was a CO. My goal is to improve that and build up a solid credit portfolio, I was just awarded some lines of credit with NFCU. But would some other less leniant companies prefer to see that charge off paid in a manual review or does it not really matter at this point?

Also I was considering the possibility that I might need a relationship with Capital One sometime in the next 6.5 years. I know they obviously won't touch me now with that debt owed, but if I satisfied that debt would they allow me to rebuild my relationship with them and issue me credit? Or am I forever blacklisted?

Thanks guys!

Duke84 · ‎02-20-2015

Right now, you should make every effort to get this taken care of as quickly as possible. I say this because you will soon start getting calls from a CA wanting to collect payment and other possible fees. Additionally, you probably won't get a PFD because of the SOL in your state (which you should check BTW).

Though it'd report as a charge off, if you pay it off, it can be worded to the bureaus that it is closed and paid. Better that than Charged-Off.

I feel that if you can mend the relationship with Cap 1, they will let you back in. But it will take time. I had a charge off that went to judgment with Cap 1 years ago and after several years of having no credit cards (and emerging from bankruptcy), they offered me a secured card, an unsecured card, and a business card.

Fixing the problems now will make things easier for you later.

Starting Score: EQ: 537, TU: 488, EX: 558 (8/2014)
Current F8 Score: EQ: 733, TU: 734, EX: 709 (4/2023)

Current Cards:

Store Cards:

Anonymous · ‎02-20-2015

+1 ^^^^

Agreed. Settle it now because it has the potential to get much worse. Cap One WILL eventually send it to collections, then you will have two hits for the same account. And if the CA decides to sue, it could turn into THREE hits for one account, on top of the payment history.

Cap One does not blackball customers like many other big banks. There are lots of people that have gotten new accounts with them while still having old charge offs.

Anonymous · ‎02-20-2015

Ok good to know ! I called Cap 1 and they did tranfer me to a North Land Group CA. Is it normal that I have not recieved contact from the CA in any shape or form yet?

Duke84 · ‎02-20-2015

It's normal because the CA is probably trying to figure out what fees they can tack on for obtaining the account.

If you're serious about this, I would suggest you get aggressive with them now. If you can make arrangements with the CA now, the worst that can happen is that only Cap 1 will report to the bureaus that the account was paid off. The longer you wait, the more likely the CA will report the collection to the bureaus.

Starting Score: EQ: 537, TU: 488, EX: 558 (8/2014)
Current F8 Score: EQ: 733, TU: 734, EX: 709 (4/2023)

Current Cards:

Store Cards:

Anonymous · ‎02-20-2015

@Duke84 wrote:
It's normal because the CA is probably trying to figure out what fees they can tack on for obtaining the account.

If you're serious about this, I would suggest you get aggressive with them now. If you can make arrangements with the CA now, the worst that can happen is that only Cap 1 will report to the bureaus that the account was paid off. The longer you wait, the more likely the CA will report the collection to the bureaus.

Yeah I am jumping on this as I type lol. I was not aware that things could further escalate past Cap 1s charge off showing up on my report. Lucky to have found you guys lol and I feel bad for all the poor souls out there that are getting owned becuase of the lack of knowlege and support for these complex topics.

Anonymous · ‎02-20-2015

@Anonymous wrote:
@Duke84 wrote:
It's normal because the CA is probably trying to figure out what fees they can tack on for obtaining the account.

If you're serious about this, I would suggest you get aggressive with them now. If you can make arrangements with the CA now, the worst that can happen is that only Cap 1 will report to the bureaus that the account was paid off. The longer you wait, the more likely the CA will report the collection to the bureaus.
Yeah I am jumping on this as I type lol. I was not aware that things could further escalate past Cap 1s charge off showing up on my report. Lucky to have found you guys lol and I feel bad for all the poor souls out there that are getting owned becuase of the lack of knowlege and support for these complex topics.

<raises hand> That was me for the previous 51 years of my life. I now consider myself "formerly owned"

Anonymous · ‎02-20-2015

Is it better to pay in full or settle ?

Anonymous · ‎02-20-2015

@Anonymous wrote:
@Anonymous wrote:
@Duke84 wrote:
It's normal because the CA is probably trying to figure out what fees they can tack on for obtaining the account.

If you're serious about this, I would suggest you get aggressive with them now. If you can make arrangements with the CA now, the worst that can happen is that only Cap 1 will report to the bureaus that the account was paid off. The longer you wait, the more likely the CA will report the collection to the bureaus.
Yeah I am jumping on this as I type lol. I was not aware that things could further escalate past Cap 1s charge off showing up on my report. Lucky to have found you guys lol and I feel bad for all the poor souls out there that are getting owned becuase of the lack of knowlege and support for these complex topics.
<raises hand> That was me for the previous 51 years of my life. I now consider myself "formerly owned"

LOL! Well I guess I am lucky enough to jump on this stuff at a young age

gdale6 · ‎02-20-2015

@Anonymous wrote:
Is it better to pay in full or settle ?

Being so new you want to PIF, that will look much better in the eyes of an underwriter.