Unsure how to handle a negative account

[Anonymous]

In xxxx, I opened an account with Capital One. I was given a $500 CL and used it off and on for a few years. When I was laid off I was unable to make any payments and it was subsequently sent off to the collections dept. The balance grew to roughly $700 dollars. Many  years later, I was given another Capital One unsecured card and then another. A Platinum and a QS with low initial limits but have since grown to $2800 and $3000 respectively. My current FICOs are 654TU/633EQ/640Exp. 

The Capital One account has resurfaced and is now being reported to all three bureaus as an open acct, in collections, over the limit. After speaking with CapOne about a possible good will removal and transferring the balance to my new well established cards (which they declined) I am at a loss what to do with this acct. 

It's old and as such doesn't have much impact on my current scores, but the over the limit and open derogatory are being reported every month like clockwork. My scores after climbing for so long are at a standstill.

Do I outright pay off the account - which I am thankfully financially able to do -- but then re-age it. Or wait for it to fall off and suffer the monthly dings? Is there a way I can convince Capital One that it would not be in their best interest to report me since I am a pretty good customer since and have offered to pay it in full for a goodwill removal? Can they report an old account as open and over the limit and in collections for as long as they want?

Any suggestions/advice is appreciated. Thank you myFico. I have been lurking these forums for years and they've helped tremendously.

[Anonymous]

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@Anonymous wrote:

In xxxx, I opened an account with Capital One. I was given a $500 CL and used it off and on for a few years. When I was laid off I was unable to make any payments and it was subsequently sent off to the collections dept. The balance grew to roughly $700 dollars. Many  years later, I was given another Capital One unsecured card and then another. A Platinum and a QS with low initial limits but have since grown to $2800 and $3000 respectively. My current FICOs are 654TU/633EQ/640Exp. 

The Capital One account has resurfaced and is now being reported to all three bureaus as an open acct, in collections, over the limit. After speaking with CapOne about a possible good will removal and transferring the balance to my new well established cards (which they declined) I am at a loss what to do with this acct. 

It's old and as such doesn't have much impact on my current scores, but the over the limit and open derogatory are being reported every month like clockwork. My scores after climbing for so long are at a standstill.

Do I outright pay off the account - which I am thankfully financially able to do -- but then re-age it. Or wait for it to fall off and suffer the monthly dings? Is there a way I can convince Capital One that it would not be in their best interest to report me since I am a pretty good customer since and have offered to pay it in full for a goodwill removal? Can they report an old account as open and over the limit and in collections for as long as they want?

Any suggestions/advice is appreciated. Thank you myFico. I have been lurking these forums for years and they've helped tremendously.

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It's not old enough to stay off your reports. It is affecting your scores. Do you have other baddies?

Of course you should pay it. If the debt is yours and you created it, you should pay it.

You state it doesn't affect your scores but then you say should I just continue to stiff them and take the monthly ding.

Why would it be in Capital One's best interest not to report? They could care less if you close your current accounts. 

The debt will report for 7.5 years from the date of your first delinquency.

Pay the bill if it's yours.

Work on a goodwill campaign after its paid. Do you really think they will give you a GW deletion as it stands now?

[Anonymous]

What does xxxx mean? What was the date of your first delinquency?

[Anonymous]

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@Anonymous wrote:

It's old and as such doesn't have much impact on my current scores

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It's a major derog, which means it's adverse impact on your scores is substantial.  Do you have any other negative accounts?  If not, getting rid of this one negative, your only negative, could result in a scoring increase of 50-100 points.  That's major.  I would do everything in my power if I were you to get that thing removed, continuing to offer a 100% PFD, etc.

[Anonymous]

Doh, I had that there to remind me to look it up to be sure. Card opened Jan 2010, DOFD Feb 2011.

[Anonymous]

I have one medical debt that went to collection for $36 in 2009. (For the life of me I can't convince the CRAs that a print out five years later is not validation). I didn't think it would get me as much as 100 points. I'll definitely keep on top of this. Thanks for your help.

[Anonymous]

I have no problem paying the debt just wanted to be smart about it if possible. I have had mixed results asking for GW deletions, sometimes I ask not expecting a yes and voila.

[UncleB]

Moving to 'Rebuilding Your Credit' for more exposure...

[rmduhon]

To add to what the others have said, paying the account will not re-age it. The DoFD will remain the same. As for the medical collection, what it the DoFD for it? If it's from 2009, then it should be removed by June at the latest, if the DoFD was 12/09.

[Anonymous]

My main concern is that even though the account is marked closed on some reports it is still reporting as over the limit, recent derogatory, and high credit utilization. I plan to just pay it off in full today if possible, but I wanted to make sure that was my best move. Thanks for your help. 

The medical debt is scheduled to fall off this summer I am constantly worried someone will get a sneak judgment against me (SOL is 15 years and I live on the other coast these days.