Charge Offs

[RobertEG]

Satisfaction of the debt, be it by payment in full or a settlement for less, is always beneficial.

As long as you have unpaid, delinquent debt, it can be a show-stopper in a quest for new credit, regardless of FICO score.

If they wont agree to deletion of the CO, then the next best thing is that they agree not to report paid/settled for less when reporting satisfaction of the debt.

Absent that additional reporting, your CR will appear the same as if the debt were paid in full.

Settling for less is better than not satisfing the debt at all, but that special comment will inform others that the creditor still took a loss in their dealings with you.

It's a step up from not paying, but still a potential negative in any future lending decision.

[DaBears]

If they charged off the account and the bal was less than the credit line its not factored into your util. I know this cause I had a charge off with GE Capital from 2009 $600 CL and they charged off $496. All I got hit with was the charge off affecting my score not my util %

[guiness56]

A creditor can charge of the entire amount or just a portion of the amount depending on when they actually do the CO.

Either way, it does affect your utilization as long as both the CL and the balance are reported.

For whatever reason, you got lucky if it was not included.

There are many on here where whatever was charged off, be it the entire balance or a portion, it was included.

[Bigtonyp24]

so i was able to get the collections agency that has my charge off from capital one to settle the $1200 for $700.. do you think this is smart to do at this point. i know capital one wont remove the charge off with a pfd. or a good will letter. and at this point it already hurt my score that it was charged off and i feel that if i settle it for a lesser amount i can use the rest of hte money to clear up debt that is not charged off

Please advise. any input would be great. thanks

Anthony