Paying Off CO Credit Card

[Captain13]

I just paid off a Capital One card charged off back Dec. 2010.  Hasn't been effecting my credit since then as far as reporting negatively. Credit reports did show O.K. and I've been working on my credit for the past year and it was time to pay off this eye sore on my credit. I contact them and setup a payment plan in which they agreed to except less than the CO amount. I ask how will this reflect on my credit and got the response that it will show "closed, 0 balance, account paid for less than full but would no longer be on credit report as a debt owed. Well I complete the payments as agreed as of May 2013 and sure enough they report finally on July 2013 as a closed account but a 3 point loss for closing a credit card I guess. 

I wake up this morning with an alert that my score had changed. I log in and Cap One had reported to my credit as CO from January 2011 to July 2013 and dropped my score 30 points over night.  Is this possible? I have read that after 2 years an account cannot reflect on your credit.  As I wrote the account had been reporting CO but O.K. since January 2011 and I pay them off and now they change it from that to CO 90+ every month since Jan of 2011 as if there never CO my card and took my high credit from 0 back to the 778 as if the account had never been closed. Is this Legal?

30 points over night... it will take me months to recovery that..... I should have just left it alone

[Captain13]

I just paid off a Capital One card charged off back Dec. 2010.  Hasn't been effecting my credit since then as far as reporting negatively. Credit reports did show O.K. and I've been working on my credit for the past year and it was time to pay off this eye sore on my credit. I contact them and setup a payment plan in which they agreed to except less than the CO amount. I ask how will this reflect on my credit and got the response that it will show "closed, 0 balance, account paid for less than full but would no longer be on credit report as a debt owed. Well I complete the payments as agreed as of May 2013 and sure enough they report finally on July 2013 as a closed account but a 3 point loss for closing a credit card I guess. 

I wake up this morning with an alert that my score had changed. I log in and Cap One had reported to my credit as CO from January 2011 to July 2013 and dropped my score 30 points over night.  Is this possible? I have read that after 2 years an account cannot reflect on your credit.  As I wrote the account had been reporting CO but O.K. since January 2011 and I pay them off and now they change it from that to CO 90+ every month since Jan of 2011 as if there never CO my card and took my high credit from 0 back to the 778 as if the account had never been closed. Is this Legal?

30 points over night... it will take me months to recovery that..... I should have just left it alone

[guiness56]

If it was a CO it was affecting your credit.  If it was reporting your balance and CL it was a double ding by affecting your utilization also.

You don't lose points for closing CC.  The CL is no longer factored into your utilization and you may have lost a few for that.

It looks like maybe it has not been updating in awhile.  When you paid it off they reported it along with all the lates.  When that happened it updated the date to a current date and made it look newer.  This will make you lose points but it is legal.

Not sure where you got the 2 years from.  Negatives can report for up to 7.5 years and a CO will affect your score for that length of time.

[Captain13]

I believe that after that time they cant report monthly on your credit which is why I said 2 year. So even though items will stay on your credit for 7 they arent actively reporting to it. So they have done their damage already to your credit and will probably keep your score from climbing up as fast as it could. Now that being said I have paid off 2 other credit cards 1 being another Cap One card.  Neither of them reported to my credit as this one. Why do it with one and not the others..

[guiness56]

If you owe money on an account they can and most likely will report you as late every month until paid.  Nothing illegal about it.

The only time they cannot report you late is if they sold the account and was reporting a 0 balance.

There is nothing in the laws that says they are prohibited from reporting after 2 years on a closed, CO account,

[Captain13]

So July they report closed paid as agreed 0 balance paid as agreed high credit 0 and in August report late every month from the first CO after reporting ok from Jan. 2011. I pay off the account and a month later they take my High Credit on the card from 0 to 778 and report as late for 19 months.  I"m confused as to how they can report an account as a CO or Closed and then reopen the same account after its paid off as late and an open high credit of 778 balance of $500.  This is after they told me it would be taken off my credit and show paid to 0.

[guiness56]

When did you actually pay the account?

An account can only be CO'd once.

Can you post the before and after TLs so I can actually look at it.  It would be much easier and avoid confusion on my part.

[Captain13]

Credit AccountCap One

Status as ofDate opened [?]Date of last activity [?]Largest past balance [?]Account Type [?]Account holder [?]Industry

Jul, 2013

Aug, 2010

Nov, 2010

$778

Revolving

Individual

All Banks

Descriptions [?]

• Account paid for less than full balance
• Closed or paid account / zero balance

No contact information provided by Equifax

Balance [?] Current Status [?]

$0	Bad debt/collection

Seven year payment history [?]30 days late60 days late90+ days late

1 time

1 time

3 times (Mar 2011, Feb 2011, Jan 2011)

Worst Delinquency [?]

120+ days past due

The Worst Delinquency reports the worst missed payment status that has been documented on this account. Your FICO® score evaluates how recently that missed payment occurred and in general, the more recent, the more impact it has on your score. However, the fact that it occurred is still predictive of future payment risk and could be considered by your FICO® score.

[Captain13]

Credit CardCap One

Status as ofDate openedDate of last activityLoan typeCredit limitTermsAccount TypeAccount holderIndustry

Jul, 2013

Aug, 2010

Jul, 2013

Credit Card, Terms REV

$500

Revolving

Revolving

Individual

Bank Credit Cards

No contact information provided by Experian

Balance Current Status

$0	Account legally paid in full for less than the full balance

Seven year payment history30 days late60 days late90+ days late

1 time ()

1 time ()

25 times (Jul 2013, Jun 2013, May 2013, Apr 2013, Mar 2013, Feb 2013, Jan 2013, Dec 2012, Nov 2012, Oct 2012, Sep 2012, Aug 2012, Jul 2012, Jun 2012, May 2012, Apr 2012, Mar 2012, Feb 2012, Jan 2012, Dec 2011, Nov 2011, Oct 2011, Sep 2011, Jul 2011, Jun 2011)

[guiness56]

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@Captain13 wrote:

Credit AccountCap One

Status as ofDate opened [?]Date of last activity [?]Largest past balance [?]Account Type [?]Account holder [?]Industry

Jul, 2013

Aug, 2010          This is why your score dropped.  It hasn't udated in 3 years.  When it did it changed the status date to current.

Nov, 2010

$778                 This is just the highest balance the card ever attained.  Doesn't impact your score.

Revolving

Individual

All Banks

Descriptions [?]

• Account paid for less than full balance
• Closed or paid account / zero balance

No contact information provided by Equifax

Balance [?] Current Status [?]

$0	Bad debt/collection

Seven year payment history [?]30 days late60 days late90+ days late

1 time

1 time

3 times (Mar 2011, Feb 2011, Jan 2011)

Worst Delinquency [?]

120+ days past due

The Worst Delinquency reports the worst missed payment status that has been documented on this account. Your FICO® score evaluates how recently that missed payment occurred and in general, the more recent, the more impact it has on your score. However, the fact that it occurred is still predictive of future payment risk and could be considered by your FICO® score.

---

[guiness56]

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@Captain13 wrote:

Credit CardCap One

Status as ofDate openedDate of last activityLoan typeCredit limitTermsAccount TypeAccount holderIndustry

Jul, 2013

Aug, 2010

Jul, 2013

Credit Card, Terms REV

$500

Revolving

Revolving

Individual

Bank Credit Cards

No contact information provided by Experian

Balance Current Status

$0	Account legally paid in full for less than the full balance

Seven year payment history30 days late60 days late90+ days late

1 time ()

1 time ()

25 times (Jul 2013, Jun 2013, May 2013, Apr 2013, Mar 2013, Feb 2013, Jan 2013, Dec 2012, Nov 2012, Oct 2012, Sep 2012, Aug 2012, Jul 2012, Jun 2012, May 2012, Apr 2012, Mar 2012, Feb 2012, Jan 2012, Dec 2011, Nov 2011, Oct 2011, Sep 2011, Jul 2011, Jun 2011)

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There is nothing incorrect in the way it is reporting.  They dropped the highest balance to $500, shows a 0 balance and says you settled for less.  They added all the lates which they can do.