06-12-2012 09:04 AM
My first post here. Thanks for all the great information on this site.
I had a CO from Capital One from 2007. I am currently looking into buying a home so I am cleaning up some issues. Well this CO was one of them. The account was for 6000 their attorney asked what I would pay to take care of this account. I said 3000. Maybe I should have tried lower. However that is past the point. So I have a letter saying that the account was Settled in Full.
Problem now my credit reports say Settled in Full however my balance is not zero. It is 3k. So they just reported the other amount that I owed.
I had another card that I paid in a settlement years ago. It said Settled for amount less than owed. Though the balance is zero.
If you are a lender are you going to see this balance and assume I still owe it? Does it look bad to them and does it hurt my utilization as well?
06-12-2012 01:06 PM
Adding the speicial comment of paid for less is totally appropriate, but regardless of the amount paid to satisfy the debt, the debt becomes $0 and must be reported as such. Continuing to show a balance on the account does more than imply non-satisfaction of the debt, it explicitly states as such.
I would send the creditor a direct dispute, asserting inaccuracy in their reporting of a balance due on a satisfied debt.
06-12-2012 06:35 PM
06-12-2012 08:12 PM
I spoke with Cap One today and asked why I still had a balance of 3000 still showing on my reports even though I have a letter saying that the debt was Settled in Full. Their reply was it was being reported correctly and even though I settled the remaining balance will be posted.
To me this does not sound right. I am fine for them putting debt settled for less than full amount or whatever. Just not happy about remaining amount still being posted and I am sure it is hurting my utilization.
So if they are not supposed to do this can someone please help me out and let me know what route I need to take to get them to post a 0 balance on my reports.
06-14-2012 08:07 AM
This is exactly the info I need as well. I am paying them off only because they are affecting my utilization. Not even because my lender will require it for a mortgage. I would really, reallly like to know how to get a zero balance if I paid a settlement (paying today or tomorrow!)
06-14-2012 12:07 PM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.