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PIF or Settle - Charge Off but still with original creditor

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Member

PIF or Settle - Charge Off but still with original creditor

I owe CapOne on an account that was charged off but never sent to a collection agency. The account is about 5 years delinquent. I am applying for a house so I need to get this taken care off. I am reading mixed reviews on what whether to try to settle or pay in full. Based on the simulator it seems like paying it in full would have a huge increase in my credit score since this debt is still coming up for my debt utilization. Does it matter that this was never sent to a collection agency? I'm just trying ot figure out what to do.

 

Thanks

Message 1 of 7
6 REPLIES
Member

Re: PIF or Settle - Charge Off but still with original creditor

I forgot to mention that this is my only debt besides student loans and car payment. I had a few other charge offs but everything is paid in full but this.

Message 2 of 7
Epic Contributor

Re: PIF or Settle - Charge Off but still with original creditor

No it doesn't matter that it was never sent to a CA.  It just means Cap one owns the debt and never assigned it to one.

 

Yes, paying it off will help you temendously.

Message 3 of 7
Super Contributor

Re: PIF or Settle - Charge Off but still with original creditor

 

I agree that paying it should help your FICO score, if paying significantly lowers your revolving utilization.    IMO it's also worth a shot to further negotiate with Cap1 to remove late payments.  

 

You are lucky that a CA didn't get the debt because you very likely would have had a collection appear on your reports and your FICO score would have been hit again.

 

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 4 of 7
Epic Contributor

Re: PIF or Settle - Charge Off but still with original creditor

Message 5 of 7
Super Contributor

Re: PIF or Settle - Charge Off but still with original creditor

 

Yeah, I would advise negotiating for all the derogatory account info to be removed if possible.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 6 of 7
Valued Contributor

Re: PIF or Settle - Charge Off but still with original creditor

A settled account is considered derogatory and could lower your score. I would pay in full.

Equifax My FICO score 814 11/29/2016, Discover TU FICO 807 12/29/2016 Citibank Equifax Bankcard FICO score 827 12/27/2016 Average of Accounts 13 years and no Installment accounts, 1 TU inquiry in 2015
Message 7 of 7