Confused But Ecstatic!

[itgirl74]

I just got a ScoreWatch notification (actually my 2nd in one day). It was a change to my Capital One Auto Finance tradeline.

It was:

Status: Bad Debt; Placed for Collection

Description: Paid charge off

Now it is:

Status: Pays account as agreed

Description: Closed or Paid Account/Zero Balance

The story on this account is that I took out the loan in 2008 and was very very bad about keeping up with the payments. I was desperate for a car and went to one of those places that guarantees financing, and they talked me into getting a more expensive car than I wanted, and I ended up with a ridiculous interest rate (somewhere around 22%). The car was repo'ed twice - once in July 2011 (I got it back about a week later) and again in January 2013 (that time it took me more than a month to get it back because I was paying for cancer treatments for my dog). The loan was supposed to be paid off by August 2013, but I didn't make the last payment until 12/31/13, which is basically the day I decided to get my act together and clean up my credit/finances. When I pulled my credit reports in February, the tradeline still showed a balance. I disputed it so they'd updated it to paid/closed. Along with its terrible payment history (probably more lates than on-time months; repo for 1/2013 and 2/2013), it showed as a paid charge off.

I have NO IDEA why they would have updated the status on this. I've been contemplating sending a GW letter but hadn't gotten around to it yet. The only thing I can think of is that they like me because I have a new secured card with them, and I've been using it a ton but always paying it off before the statement date. I believe I saw another thread on here a couple days ago about Capital One mysteriously removing negative information on an old account for someone who is a current good customer. I couldn't find that thread, though, so I had to post my own.

So what's the effect on my score from this change?

This morning I was at 603. My first SW alert was of a CC balance going from 72% util to 6% util. My score went up to 628.

With the 2nd alert, my score went up to 656!

I am jumping for joy and crossing my fingers that this is a permanent change! I wonder if they changed anything in the payment history? I suppose that would have been in the alert?

[Gunnar419]

That's a huge leap! And two positive SWs in one day had to feel great. Congrats on your amazing progress!

[gdale6]

Most likely they found something in error in the way they handled the repo so they decided to remove possible litigation by commuting it to a closed positive account. The payment history would have been changed as well to either no report at all or OK on a monthly basis. Grats a nice stroke of luck

[New_Beginning]

Congratulations!!!

[itgirl74]

I couldn't resist pulling a ScorePower report (even though I just paid for the triple report 3 days ago). The entire payment history is GONE. It nows says:

30 days late: 0 times

60 days late: 0 times

90 days late: 0 times

The timing on this could not be better because I am about to start applying for a new rental, in a state 2000 miles away. I was SO worried about this particular account because it's so recent. I still have a couple of paid CC charge-offs, but they are several years old.

I could cry I'm so happy. I can't wait to see this change on EX and TU!

Edited because I apparently forget how to spell when I'm happy.

[Florida1990]

Congrats on the success.

[itgirl74]

It looks like this has so far only been changed on Equifax. I guess I should not be surprised since TU hasn't even updated my CC utilization that I know is report on the 30th of the month. Not to be greedy (this is still a totally unexpected awsome surprise), but I hope the other reports are updated before I start applying for a place to live.