new member needs suggestions

[soxcited]

Hi All. I am a new member here and I need your help/suggestions. I want to clean my reports and raise my score as you can imagine.I just pulled my 3 credit reports and the current situation is below. I disputed the items, they came back verified. One is charged off with Capitalone. What do you think is the best way to handle these cases?

I understand Capitalone does not negotiate so I am not even going to try PFD. Should i try to settle? Capitalone is my oldest account on the reports.

CAPITAL ONE BANK USA
Balance: $ 1,100
High Balance: $ 650
Credit Limit: $ 300
Past Due: > $ 1,100 <
Pay Status: >Charged off as bad debt<
Account Type: Revolving Account

I have not contacted the OC or CA as of yet. I would like to know what I can do with them beforehand if possible. Thanks in advance. 

[llecs]

Welcome to the forums!

I'd suggest reading the following:

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.

and What Steps Do I Take - great for learning the repair process.

CapOne - i wouldn't settle. A "settled" comment is just a bad as a CO. If you didn't want to do the PFD (I wouldn't either based on their track record), then try PIF and then start sending GWs.

The HIPAA process involves paying the debt to the OC first. If you go that route, get everthing in writing.

[LIGHTNIN]

agree with llecs, In order for the HIPAA process to work, the step by step process must be followed in order.

The steps are not listed here, you would have to google "HIPAA process"

[soxcited]

what if the baddie is the only TL reporting CL and balance? The balance is 400% of CL and 200% of high balance. Do you think settlement is still a bad idea? If I settle, the balance will be removed from utilization correct? Then with the money i saved i can get a secured card for a positive TL.

[guiness56]

---

@soxcited wrote:

what if the baddie is the only TL reporting CL and balance? The balance is 400% of CL and 200% of high balance. Do you think settlement is still a bad idea? If I settle, the balance will be removed from utilization correct? Then with the money i saved i can get a secured card for a positive TL.

---

Maybe I am blind but, I see nothing in the original post about a medical collection lol.  I even read it 3 times.

As for Cap One, first be careful with them as far as settling.  They can come after you for the remaining balance if your settlement is not worded right.

But, yes, the money you pay would decrease your utilization.  It really depends on how they report the settlement, balance wise.

A settlement showing on your CR is just as bad as the CO, if not worse.  Creditors do not like to see that.  Is there anyway you could PIF?

What is the DoFD and your states SOL?

[soxcited]

guiness56 you are not blind lol i edited the post i just wanted to concentrate on the cap1 in this thread sorry for confusion. 

DoFD is 2006 and SOL is 5 years so it is still within SOL and you are right they can come after me for the remaining balance. I search the forums but I could not find any information regarding if Cap1 aggrees to not pursue/sell the remaining balance in settlement agreements. They sent a link to a website (called solutions), they want me to login to make payments etc. but i am reluctant as I think i should first have a written aggrement before making any payments.

[guiness56]

I would write the Cap One and tell them you are more than willing to pay, however, you want to pay them directly and not make payments online to a company you know nothing about.

Get a response back from them before you do anything else.

[RobertEG]

If you settle for less, then if done right, will remove debt liability.  But it will also remove any CL you had on the account.

If the debt went to both CO and a CA, paying the debt to anyone wont result in deletion of those prior, reported derogs.

You probably had at least one or two monthly derogs reporting on the OC account prior to the CO, then reporting of the CO, then reporting of the CA,

None of these derogs are deleted based on simple settlement of the debt.  So maybe 4 or so derogs remaining?  Three of which are major?

They will remain in your CR, and make it difficult for any FICO score improvement, and thus improvement of chances to securement of new credit.

If they choose to dig deeper into your CR, a settlement as opposed to a PIF is never viewed favorably by a potential creditor. 

Why?  Because it says you had prior debt that you chose not to pay in full, so the creditor took a loss.

[LIGHTNIN]

---

@soxcited wrote:

guiness56 you are not blind lol i edited the post i just wanted to concentrate on the cap1 in this thread sorry for confusion. 

DoFD is 2006 and SOL is 5 years so it is still within SOL and you are right they can come after me for the remaining balance. I search the forums but I could not find any information regarding if Cap1 aggrees to not pursue/sell the remaining balance in settlement agreements. They sent a link to a website (called solutions), they want me to login to make payments etc. but i am reluctant as I think i should first have a written aggrement before making any payments.

---

Like roberteg said"If you settle for less, then if done right, will remove debt liability." Just make sure your settlement agreement says

"considered paid" or "considered debt satisfied" something to that effect.Good  Luck to you