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Old Capital One CO, how should I handle it?

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Anonymous
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Old Capital One CO, how should I handle it?

I recently tried to get approved for a mortgage, and not totally unsurprisingly, discovered my credit was not up to par with what the loan providers were looking for. So now, i'm trying to build/fix my credit. I have one derogatory item on my credit report. It's an account through Capital One that was charged off at $590 ($300 credit limit). DOFD is 02/2012, and CO date is 08/2012. The debt is still owned by Capital One, and gets reported as a CO every month.

I'm wondering what my best course of action is at this point, requesting a PFD, paying in full, attempting to settle, or waiting for it fall off my report on 01/2019. It's my oldest account, and from some of my research, it sounds like getting it removed at this point could actually hurt my score instead of improve it. I also don't want to "poke the bear" by contacting them and end up with the clock reset on reporting or my debt being sent to a collection agency.

I don't know how much it's affecting my score, or how much removing it will improve it. Some things I read say its around 30-50 points and the impact lessens over time, and others say it doesn't and could be lowering it by around 100 points. My score is around 630, and I have 2 cards (2500 with local CU, 200 secured Discover) and an $800 personal line of credit with the local CU. I never carry a balance on any of them. My score has only gone up about 40 points in the past 2 years i've been paying attention to it, and I suspect the CO has a lot to do with that. I've tried on several occasions over the past couple years to apply for another card, always denied, and they always mentions a serious delinquency, as did the mortgage denials. If I pay it off or settle, and it shows up as a charge off that's paid, will it still be considered a serious delinquency?  

 

Thanks for any advice on how to approach this

 

Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: Old Capital One CO, how should I handle it?

I would say if you have the money to pay the charge off, pay in ASAP. Otherwise negotiate a smaller amount to settle. If it's already paid send a message to the credit reporting bureau that this debt has been fulfilled and they will take it off your credit. I use credit karma to monitor, really easy to send message to transunion and equifax. It will affect your credit but after a while it will not hold as much weight

Message 2 of 6
Anonymous
Not applicable

Re: Old Capital One CO, how should I handle it?

I'll probably try and negotiate to pay it off for $300, since thats the original amount I owed when it first went into delinquency. I thought though, that even if I paid it off, it would still show up on my report til the 7 years was up unless they did a PFD or GW delete? I use credit karma too, but I don't really trust it. My "score" on there is about 100pts higher than my actual score, and the delinquency doesnt show up at all. I've got the free monitoring from equifax for the next 8 months or so, and my FICO score from my discover card. 

Message 3 of 6
gdale6
Moderator Emeritus

Re: Old Capital One CO, how should I handle it?


@Anonymous wrote:

I'll probably try and negotiate to pay it off for $300, since thats the original amount I owed when it first went into delinquency. I thought though, that even if I paid it off, it would still show up on my report til the 7 years was up unless they did a PFD or GW delete? I use credit karma too, but I don't really trust it. My "score" on there is about 100pts higher than my actual score, and the delinquency doesnt show up at all. I've got the free monitoring from equifax for the next 8 months or so, and my FICO score from my discover card. 


Its going to report as a Paid CO. This is nearly in its last year of reporting I would try to get the PFD from Cap-1 first and failing that then just pay it and switch to GW letter campaign requesting it be removed. Cap-1 may yield in final year of reporting any other time its nearly impossible to get them to remove. CK can only be used to monitor the info the score is Vantage 3.0 and hardly anyone uses it.

Message 4 of 6
Anonymous
Not applicable

Re: Old Capital One CO, how should I handle it?


@Anonymous wrote:

I would say if you have the money to pay the charge off, pay in ASAP. Otherwise negotiate a smaller amount to settle. If it's already paid send a message to the credit reporting bureau that this debt has been fulfilled and they will take it off your credit. I use credit karma to monitor, really easy to send message to transunion and equifax. It will affect your credit but after a while it will not hold as much weight


Since when do the credit bureaus remove derogatory accounts because one sends a message saying "this debt has been fulfilled"? Lol....

Message 5 of 6
Anonymous
Not applicable

Re: Old Capital One CO, how should I handle it?

With the PFD request, can I try and settle for less than the full amount or would I be better off offering to pay it in full?

Message 6 of 6
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