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Member
Posts: 7
Registered: ‎02-09-2013
0

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

Member
Posts: 7
Registered: ‎02-09-2013
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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.

Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
0

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.

Super Contributor
Posts: 9,674
Registered: ‎01-28-2010
0

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
Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
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Re: PIF or Settle - Charge Off but still with original creditor

[ Edited ]
Super Contributor
Posts: 9,674
Registered: ‎01-28-2010
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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
Valued Contributor
Posts: 1,977
Registered: ‎04-07-2009
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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.

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