Help! $32 left on a 4.5yr old CC charge-off

[ABuckNow]

Looking for help and advice - my wife and I are trying to get approved for a home mortgage, currently im at 671 fico.

I have an old Citibank visa that's maybe causing problems.

They charged off around 1300, and i paid them back all but $32 of this (I don't know why i didn't repay in full, this was all almost 5yrs ago).

It's still showing as failure to pay and what-not, I'll copy/paste the exact credit line items below.

Should I pay this $32 off?  I've tried calling them several times to work out a deal, but they won't do anything other than take a payment.

I don't understand the nuances here of "last activity" and it's impact on my score, please understand this is an old account that I haven't touched in almost 5 years.

I need 9 stinking points to get this loan...any help please!

From my Equifax report

Closed Accounts
CITIBANK 4486XXXXXXXXXX 03/10/2004 $32 12/31/2012 $32 CHARGE-OFF $0
CITIBANK
Citicards
PO Box 6241
Sioux Falls, SD-571176241
Account Number: 448604900012XXXX Status: CHARGE-OFF
Account Owner: Individual Account. High Credit:
Revolving Credit Limit: $0
Term Duration: Terms Frequency: Monthly (due
every month)
Date Opened: 03/10/2004 Balance: $32
Date Reported: 12/31/2012 Amount Past Due: $32
Date of Last Payment: 05/2009 Actual Payment Amount:
Scheduled Payment Amount: Date of Last Activity: N/A
Date Major Delinquency First
Reported:
12/2008 Months Reviewed: 50
Creditor Classification: Activity Designator: N/A
Charge Off Amount: $1,322 Deferred Payment Start Date:
Balloon Payment Amount: Balloon Payment Date:
Date Closed: Type of Loan: Credit Card
Date of First Delinquency: 05/2008
Equifax FACT Act https://fact.econsumer.equifax.com/fact/viewPopUpDetail.ehtml?prod_...
10 of 25 1/11/2013 3:43 PM
Account
Name Account Number Date
Opened Balance
Date
Reported Past
Due Status Credit
Limit
Comments: Charged off account
81-Month Payment History
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 CO CO CO CO * CO CO CO CO CO CO
2011 CO CO CO CO CO CO CO CO CO CO CO CO
2010 CO CO CO CO CO CO CO CO CO CO CO CO
2009 CO CO CO CO CO CO CO CO CO CO CO CO
2008 * * * * * * * * * 120 120 *
2007 * * * * * * * * * * * *
2006 * * * * * * * * * *

from Experian:

CITI
Address:
701 E 60TH ST N
SIOUX FALLS, SD 57104
No phone number available
Account Number:
4486XXXXXX....
Address Identification Number:
0075876781
Status: Account charged off. $1,322 written off. $32 past due
as of Dec 2012.
Status Details: This account is scheduled to continue on
record until Mar 2015.
Date Opened:
03/2004
Reported Since:
10/2011
Date of Status:
10/2011
Last Reported:
12/2012
Type:
Credit card
Terms:
NA
Monthly Payment:
$0
Responsibility:
Individual
Credit Limit/Original Amount:
$5,000
High Balance:
$2,652
Recent Balance:
$32 as of 12/2012
Recent Payment:
$0
Payment History:
Account History:
Charge Off as of Oct 2011 to Dec 2012
Balance History - The following data will appear in the following format:
account balance / date payment received / scheduled payment amount / actual amount paid
Nov 2012: $32 / May 14, 2009 / no data / no data
Oct 2012: $32 / May 14, 2009 / no data / no data
Sep 2012: $32 / May 14, 2009 / no data / no data
Aug 2012: $32 / May 14, 2009 / no data / no data
Jul 2012: $32 / May 14, 2009 / no data / no data
Jun 2012: $32 / May 14, 2009 / no data / no data
May 2012: $32 / May 14, 2009 / no data / no data
Apr 2012: $32 / May 14, 2009 / no data / no data
Mar 2012: $32 / May 14, 2009 / no data / no data
Feb 2012: $32 / May 14, 2009 / no data / no data
Jan 2012: $32 / May 14, 2009 / no data / no data
Dec 2011: $32 / May 14, 2009 / no data / no data
Nov 2011: $32 / May 14, 2009 / no data / no data
Oct 2011: $32 / May 14, 2009 / no data / no data
Between Oct 2011 and Nov 2012, your credit limit/high balance
was $5,000

from Trans Union:

CITIBANK BUSINESS CRD MC #4486XXXX****
Phone number not available
701 E 60TH ST N
SIOUX FALLS, SD 57104
Date Opened: 03/10/2004
Responsibility: Individual Account
Account Type: Revolving Account
Loan Type: CREDIT CARD
Date Updated: 12/31/2012
Payment Received: $0
Last Payment Made: 05/14/2009
Original ChargeOff: $1,322
Pay Status: >Charged Off<
Terms: Paid Monthly
Date Closed: 06/23/2008
High Balance: High balance of $2,652 from 04/2012 to 04/2012; $2,652 from 06/2012 to 12/2012
Estimated month and year that this item will be removed: 05/2015

[aussiesareforever]

Hey there,

Paying off the account will NOT give you the score bump you need.  If you pay the account, it may reset the DOFD, meaning that it may take an additional seven years for it to come off your credit report. Your mortgage lender may require you to pay off your collections/charge off before they give you a loan, that is the only reason I would pay it off. Otherwise, paying it won't help your score.

You may consider working on good will letters to CITI. Write their charge off department/executive office/whoever will listen. Tell them you will pay the account off if they remove the negatives on your credit report. Only after you have something in writing should you then pay it. This route tends to take a lot of time and may not produce the desired results, esp because you don't owe them very much money. THey may choose to blow you off. Search the rebuilding section of this forum to see if you can get any specific information about Citi bank and charge offs.

Instead, work on other things that will likely bring up your score. How many credit cards do you have and how much do you owe on them. Paying down your credit accounts is more likely to give you the boost that you need. Do you have any other negatives that you could potentially write a good will letter for? Share the other info on your credit report and you will likely be able to get more specific pointers to raise your score.

[Leadberry]

---

@aussiesareforever wrote:

Hey there,

Paying off the account will NOT give you the score bump you need.  If you pay the account, it may reset the DOFD, meaning that it may take an additional seven years for it to come off your credit report. Your mortgage lender may require you to pay off your collections/charge off before they give you a loan, that is the only reason I would pay it off.

You may consider working on good will letters to CITI. Write their charge off department/executive office/whoever will listen. Tell them you will pay the account off if they remove the negatives on your credit report. Only after you have something in writing should you then pay it. This route tends to take a lot of time and may not produce the desired results, esp because you don't owe them very much money. THey may choose to blow you off. Search the rebuilding section of this forum to see if you can get any specific information about Citi bank and charge offs.

Instead, work on other things that will likely bring up your score. How many credit cards do you have and how much do you owe on them. Paying down your credit accounts is more likely to give you the boost that you need. Do you have any other negatives that you could potentially write a good will letter for? Share the other info on your credit report and you will likely be able to get more specific pointers to raise your score.

---

Not only does this make no sense, but if it were to happen it would be highly illegal.

[john398]

I would not pay it unless your mortgage company makes you

[Simply827]

---

@Leadberry wrote:

---

@aussiesareforever wrote:

Hey there,

Paying off the account will NOT give you the score bump you need.  If you pay the account, it may reset the DOFD, meaning that it may take an additional seven years for it to come off your credit report. Your mortgage lender may require you to pay off your collections/charge off before they give you a loan, that is the only reason I would pay it off.

You may consider working on good will letters to CITI. Write their charge off department/executive office/whoever will listen. Tell them you will pay the account off if they remove the negatives on your credit report. Only after you have something in writing should you then pay it. This route tends to take a lot of time and may not produce the desired results, esp because you don't owe them very much money. THey may choose to blow you off. Search the rebuilding section of this forum to see if you can get any specific information about Citi bank and charge offs.

Instead, work on other things that will likely bring up your score. How many credit cards do you have and how much do you owe on them. Paying down your credit accounts is more likely to give you the boost that you need. Do you have any other negatives that you could potentially write a good will letter for? Share the other info on your credit report and you will likely be able to get more specific pointers to raise your score.

---

Not only does this make no sense, but if it were to happen it would be highly illegal.

---

I think poster meant it might restart the clock on SOL. But since it would be paid in full, that wouldn't matter anyway.

[ABuckNow]

Would paying it improve my score?

I don't care about the $32 cash: if there's any chance it would improve my score, I'll pay it.

If there's a chance it'll reset the 7 years it's reported, i won't.

hope that makes sense

[john398]

---

@ABuckNow wrote:

Would paying it improve my score?

I don't care about the $32 cash: if there's any chance it would improve my score, I'll pay it.

If there's a chance it'll reset the 7 years it's reported, i won't.

hope that makes sense

---

what do you mean by reset? usually the account will be deleted after 7 years

[ABuckNow]

I think I don't understand for how long a credit item can be reported - I'm new to this and learning.

I ttought it was for seven years after the date of last activity - that's all I meant.

What I'm really curious about, would paying this stupid $32 help my score?  It's showing as a current balance on the card...

[RhubarbPie]

---

@john398 wrote:

---

@ABuckNow wrote:

Would paying it improve my score?

I don't care about the $32 cash: if there's any chance it would improve my score, I'll pay it.

If there's a chance it'll reset the 7 years it's reported, i won't.

hope that makes sense

---

what do you mean by reset? usually the account will be deleted after 7 years

---

If the OP pays it, the account will become 'active' again (because there was activity), and the clock may reset so that it will remain on the credit report for 7 years from the date of the final payment.

[HappySoda]

Paying the money will not help your score.

Paying the money will not cause it to be longer on your report.

Pay the debt only if your mortgage company asks you to do so.

You will have a better chance of raising your score by paying off current credit cards. Do you have any cards with a balance? Pay them off in full, that will most likely give you the score bump you need.

Another option would be to just dispute the acct. Sometimes companies don't bother respond to the dispute and will drop it off. I have had some luck with this but can't guarantee you will. Don't take my advice though, look up disputes online and decide for yourself.