Capital one charge-off and how to handle it..Need your help!

[Anonymous]

Hello guys,

I am new to the community, so I would appreciate it if you can advise me on how to handle this particular situation and move on with my life.

So I have this now closed Capital one credit card with a $300 limit which I opened way back in January 2011 when I was brand new in the credit world. I managed to make payments on time for a while until October 2011 when I stopped paying and became 30, 60, 90 and finally 120 days late as of January of the following year, 2012. To make the story short, in February of 2012, they marked the account as charged off and in the notes added, closed by consumer, closed by the creditor and unpaid balance (I don't remember ever calling them to close that account anyways). So, it's been 5 years that I 've had this closed credit card with a charged off unpaid balance of $232.

Here is the problem, I have the $232 to pay the charge off right now, but I would like to know what happens after I pay off. Will this account get deleted from my report or will it just get updated as paid charged off? I am trying to get a loan and every time they say denied due to charge-off and capital one being the only charge off that I have, must be the reason why and therefore why I'm in such a rush to pay this.

Also, Is there any realistic way that I can get this removed from my report. According to the credit bureaus, this account is due to be deleted from my report by September 2018. That's 1 1/2 years from now, and I cannot get any personal loan due to this. 

I was thinking of calling Capital one and paying via debit card today and wait until it's updated to paid, but If there is a proven way that has worked for anybody about CO deleting a charge-off, especially when it's almost about to fall off the report I would appreciate it.

Aside from this charge off, I don't have any collections at the moment. I had two and paid them a couple of months ago and now they're off my report. I do have a judgement in my report for school loans, but I'm on a payment plan with them, although the judgement is reporting until 2020 ,  but that's a whole other thread!

[Anonymous]

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@Anonymous wrote:

Hello guys,

I am new to the community, so I would appreciate it if you can advise me on how to handle this particular situation and move on with my life.

So I have this now closed Capital one credit card with a $300 limit which I opened way back in January 2011 when I was brand new in the credit world. I managed to make payments on time for a while until October 2011 when I stopped paying and became 30, 60, 90 and finally 120 days late as of January of the following year, 2012. To make the story short, in February of 2012, they marked the account as charged off and in the notes added, closed by consumer, closed by the creditor and unpaid balance (I don't remember ever calling them to close that account anyways). So, it's been 5 years that I 've had this closed credit card with a charged off unpaid balance of $232.

Here is the problem, I have the $232 to pay the charge off right now, but I would like to know what happens after I pay off. Will this account get deleted from my report or will it just get updated as paid charged off? I am trying to get a loan and every time they say denied due to charge-off and capital one being the only charge off that I have, must be the reason why and therefore why I'm in such a rush to pay this.

Also, Is there any realistic way that I can get this removed from my report. According to the credit bureaus, this account is due to be deleted from my report by September 2018. That's 1 1/2 years from now, and I cannot get any personal loan due to this. 

I was thinking of calling Capital one and paying via debit card today and wait until it's updated to paid, but If there is a proven way that has worked for anybody about CO deleting a charge-off, especially when it's almost about to fall off the report I would appreciate it.

Aside from this charge off, I don't have any collections at the moment. I had two and paid them a couple of months ago and now they're off my report. I do have a judgement in my report for school loans, but I'm on a payment plan with them, although the judgement is reporting until 2020 ,  but that's a whole other thread!

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Welcome to the forums.

If you pay the CO, it will report as being a paid CO.  Capital One is a very forgiving lender, so if you take care of the CO, then they will in future more than likely find you eligible for credit with them again assuming your scores indicate eligibility.  When you phone to take care of the account, you could ask for a GW deletion at the time.  If not approved, then  you could start a GW writing campaign with them.  You mentioned not only the CO, but also a judgment.  Both are probably factoring in your denial.

[Anonymous]

Kay,

Thank you for your reply. I guess I should have given more details but I was trying to be brief. I currently have a capital one quicksilver with capital one, I also have a discover it secured credit card and a credit one credit card. Additionally, I have a secured loan and a few retail credit cards so I do have credit, but minimum. I agree that capital one is very forgiving since they game me an unsecured credit card with a charge off in my report. I will try to do a GW request over the phone, but if I can't I guess the fact that I will be paid would be equally benefitioal for me as my debt to income ratio will decline. I just wanted to know how likely it'd be that CO would delete this entry from my report. Thanks

[RobertEG]

The first question I would ask is whether they are denying credit because the charged-off debt remains unpaid, or simply because of the presence of a charge-off?

Paying the debt is not basis for deletion.

To the contrary, CRA policy is to maintain completeness of credit reporting by instructing furnishers not to delete based on payment of a debt.

If you pay, the current status will be updated from CO to paid, but that does not remove the negative scoring of the CO.

The charge-off remains in both your payment history profile and as the recorded highest level of delinquency.

It is not removed from your payment history scoring.

However, there are two potential scoring benefits in paying a charged-off credit card.

First, if the credit is making regular monthly updated reporting that shows continued current statuts of delinquency, be it a late or a CO, FICO considers that as a longer delinquency, at it continues to have max scoring impact.  However, if the creditor has ceased updated reporting, then FICO does not extend the effect of the CO, and it begins to age.  If you pay, updated delinquency status ceases to be reported, and the effect of the CO begins to age.

Second, even if closed and charged-off, the remaining balance continues to be included in scoring of your % util of revolving.

Paying will thus lower your % util.