*****NEED HELP ASAP - APPLIED BANK *****

[westo12]

So I paid a $1468 charged off cc in full.  Applied bank then updated the balance to $0, which gained me 43 pts (BUNGALOW, I guessed 40... ) on TU since it was affecting my util (they were reporting the balance). 

HOWEVER, it is not reporting as paid in full, but instead - Charged off as bad debt $0/ Profit and loss writeoff, with a $0 bal, $0 past due.

Shouldn't this read paid in full or even paid in full after charge off?  If yes, and I can get them to update, would this have any affect on my score?

[astrangerwcandy]

It SHOULD read Paid in Full and you may actually be able to get a deletion based on that, however as far as FICO score I dont believe it makes a difference.

[nicktheman]

You should send a GW letter asking for deletion.

[westo12]

I sent a copy of the canceled cashier's check to Experian, who said they can dispute and update the status based on that info.  I hope this is true info. 

I don't want a complete deletion, this account is factoring in my AAoA and is showing no lates at all.  If removed, that would have the opposite affect on my score.  Correct?

I just spoke to Applied Bank on the phone, they told me that even though it's paid in full (I actually have a CR bal of $.35 on account), the new status will not be updated and sent to the bureaus for 30 days after my payment date to make sure the "payment clears".  That's their internal policy. 

I've disputed online with Transunion also, will also mail them a copy of the canceled check and see if they can do the same as Experian.

[nicktheman]

You should send a GW letter to Applied Bank and ask them to revise the tradeline to a positive status.  How was it a charge off with no lates?

Whether the account reads paid in full after charge off, collection paid in full, or how it reads now would not change your credit score.  

Message Edited by nicktheman on 07-15-2009 12:20 PM

Message Edited by nicktheman on 07-15-2009 12:22 PM

[westo12]

I don't know why it's not reporting any lates, it's just not.  And I don't want to rock that boat. 

The point is that it doesn't read "paid" at all.  Just charged off to bad debt.  That's what I need to change.

[nicktheman]

It shows a $0 balance which means it is paid in full.  It will not change your credit score even if it says paid in full. 

The only way to improve your score is to get them to either delete or change to a positive status (current, never late) by using a GW letter.

[westo12]

Ok thanks for the explanation.  Makes sense. 

[fused]

I agree, its reporting correctly. Many people don't realize that paying "certain" COs can boost scores. Congrats!

[westo12]

Thanks!   Only two more to go and those are older than the applied, but still 2 years away from falling off.