I am trying to figure out best way to handle a couple of bills this month. I have been able to negotiate with Cavalry Portfolio to settle a charged off account and have it reported as Paid in Full. I currently have it set up to make this settlement payment in two payments over the next month.
However, I am able to pay it all in one payment this week if I pay less on my Capital One card before it’s statement date (will still be able to pay Capital One bill in full by bill due date). Would it be better to pay off Cavalry and be done with it and have higher utilization this month (33%) or keep utilization low (under 10%) and split the Cavalry payment into two?
I may be overthinking this, I am just anxious to get credit report cleaned up and want to make sure I am making the right move. Thanks for any help!
Sounds like you already verfied to Calvery that you own the debt so I would renegotiate your terms. Instead of having them report as paid in full have them delete the whole account. Be sure to get this in writing before you pay them a dime.
I would still dispute this account the CRA's to see if you can get it removed.
Also send them a DV letter.
Focus on your open accounts because this collection account will only help your scores if its removed completly.
DON'T PAY THEM A DIME!
DV is completely meaningless in this case. OP already acknowledged that debt is his and valid.
Also, what exactly would he dispute with CRA? He/she never stated that there are inaccuracies in what's being reported.
While PFD may be the optimal resolution, it may not happen without payment in full.
OP, unless you're applying for something really import next month, 33% utilization for one month is definitely not the end of the world. You'll be fine.
There's always inaccuracies with CAs, just have to fight back.
Which in most cases does not result in removal, only in correcting inaccurate info.
Bottom line is, frivolous dispute can back fire.
Very true, it will be up to OP if he wants to take the risk or not.
Is the creditor reporting the original account, or is only the debt collector reporting the collection?
Balance on a collection is not included in your % util calculation, only the balance on a reported OC account.
Who now owns the debt, the credtior or the debt collector?
If the debt collector now owns the debt, the debt balance on any OC account should already be updated to $0.