Do you know the SOL in your state? Are you still within that time frame?
@bugkiller wrote:Hello All!
First time Poster, Long Time "Lurker!"
I have been re-building for a while, thanks for all the info from all the credit "guru's" on ths forum. Knowledge truly is power.
Quick question: I have a Cap One charge-off account with an initial credit limit of 1k. Since CO, balance has grown to $1,350. Balance is still reporting, so my UTI is reported as something like 135% on my credit reports. I know i have a moral obligation to pay this debt, which I intend on doing shortly. (Payments) However, I have read on this forum that once paid, Cap 1 reports ALL missed payments since DofFD, adding many late payments to my report.
My question is this: What's the best way to proceed with this? Will paying this drop or increase my score? UTI will go down, but MORE late payments? Good Grief! You cant win for loosing!!! Trying to do the right thing...
Please advise???
Cap 1 can report the account as a CO right up to the day its excluded. Paying a CO is not better than a CO itself unless you can get a deletion through a PFD. Cap-1 is known for an almost impossibility for a PFD. Scorewise if it is updating monthly now and you pay it off there is no immediate increase in score, if it has not been updating monthly and you pay it off when it updates there will be a drop in score. If a CO updates monthly or updates to a paid status to FICO its as if it just happened even though in this case its actually 3 yrs old. If you PIF and it updates to paid there is a chance they will stop reporting it and your score can begin to recover as it ages.
Adding: Once an account goes to a CO it is a CO forever it can never again be reported as a current good standing account even when its paid in full.
+1
you may see a drop if they update. The adding of lates doesn't make a difference. It's already a CO, that's the derog. Multiple lates don't matter. It only the update to make to look newer that would make a change.
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
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Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.