topic Re: Discover CO past SOl in Rebuilding Your Credit

Discover CO past SOl

Saltlife22 — Mon, 12 Sep 2022 17:06:14 GMT

Hello. I will try and be brief, but accurate.

I have a CO with Discover that still has a balance of $1993. As such it is still reporting monthly and dragging down my score and utilization. It is past the SOL in Delaware and in my home state where I currently reside and have for the past 20 years. Discover 1099c me last year and taxes have been paid. DOFD was 2/2017.

My questions are:

1. Will contacting them to potentially settle and close the account to a $0 balance restart SOL and open me to lawsuit?

2. What do you think they will settle for since it is past SOL and I have already been 1099c'd?

3.With this being my only unsatisfied negative TL will it have a positive impact on my score if I settle it and get balance to 0? Or should I just wait another year or soand let it age off?

Re: Discover CO past SOl

gdale6 — Mon, 12 Sep 2022 17:17:49 GMT

@Saltlife22 wrote:
Hello. I will try and be brief, but accurate.

I have a CO with Discover that still has a balance of $1993. As such it is still reporting monthly and dragging down my score and utilization. It is past the SOL in Delaware and in my home state where I currently reside and have for the past 20 years. Discover 1099c me last year and taxes have been paid. DOFD was 2/2017.

My questions are:
1. Will contacting them to potentially settle and close the account to a $0 balance restart SOL and open me to lawsuit? Just talking about it is not going to reset SOL but you should always look up your states laws to see what could trigger a reset

2. What do you think they will settle for since it is past SOL and I have already been 1099c'd? Most likely 30-50% If you settle this you want to be sure to get a corrected 1099-C from them so you can get a refund of what you paid taxes on.

3.With this being my only unsatisfied negative TL will it have a positive impact on my score if I settle it and get balance to 0? only over time will Fico get better after settlement unless the 1993 is a substantial amount of your utiliztion. If its not that big of an effect on utilization you may see a few points of increase or none at all, just depends on overall profile.

Or should I just wait another year or soand let it age off? If you dont have anything major coming up in the next year in the way of needing credit then I might just let it go till it drops off then you can possibly settle for even less.

Re: Discover CO past SOl

Saltlife22 — Mon, 12 Sep 2022 17:21:49 GMT

Thank you for the response.

This $1993 is a gigantic chunk of my utilization. The limit is showing as $1500 so it has utilization at like 133% for this TL and my other 2 CC are each $500. They are both showing low balances, but this continues to plague me. If I didn't have the $1993 balance reporting my utilization would be very low.

Which is why I anticipate a score increase, but just not sure if it would be a big enough one to worth the trouble.

Re: Discover CO past SOl

GZG — Mon, 12 Sep 2022 17:30:27 GMT

@Saltlife22 wrote:
3.With this being my only unsatisfied negative TL will it have a positive impact on my score if I settle it and get balance to 0? Or should I just wait another year or soand let it age off?

I imagine you'll see a considerable score increase that will coinside with the large drop in utilization if it starts reporting as $0.

If you want to reconsider having Discover cards in the future, paying them in full might be a way back to them as soon as when the CO falls off of your reports 7 years after 2/2017. Although it could be longer.

They're prequalifiying me now and not listing bad relationship as the denial reason after I PIF my CO and it fell off of my reports.

Re: Discover CO past SOl

Saltlife22 — Mon, 12 Sep 2022 18:20:11 GMT

Thank you for your response Gatorade.

I could care less about getting back in with Discover. Over my credit journey I have learned that credit cards are not for me. I have the 2 I have currently and that is fine enough.

If I could realistically get 20-30 point increase I would like to pay the balance to $0. Otherwise I would just like to let a sleeping dog lie.

just wanting to see what others opinions were that may have been in same predicament.

Re: Discover CO past SOl

FireMedic1 — Mon, 12 Sep 2022 18:58:29 GMT

Welcome to the forums @Saltlife22 If you'd like your 20-30 points. Yes get the Disco saga paid. Then wait for the fall off date to occur. More pts once thats gone. Are you searching for a house for the points wanted since your longer interested in cards?

Re: Discover CO past SOl

gdale6 — Mon, 12 Sep 2022 20:23:24 GMT

Well with the further info on the utilization being its overlimit you are getting hit with a Fico penalty for being over 89% of the cards CL on top of the regular cost in points of the util and it being a larger part of your overall util its quite possible you could get a 20-30 Fico point boost for taking care of it. I would move to settle for less than full balance.

Re: Discover CO past SOl

Saltlife22 — Mon, 12 Sep 2022 20:32:47 GMT

@FireMedic1 wrote:
Welcome to the forums @Saltlife22 If you'd like your 20-30 points. Yes get the Disco saga paid. Then wait for the fall off date to occur. More pts once thats gone. Are you searching for a house for the points wanted since your longer interested in cards?

No. I am just wanting to tidy things up. This is the absolute last negative thing I have on my CR that shows a balance. I would like to buy a boat in the future or just be in a position to hve "good" credit if I was to need it.

Re: Discover CO past SOl

FireMedic1 — Mon, 12 Sep 2022 21:54:58 GMT

@Saltlife22Thats fine. As @gdale6 posted. Not to repeat things. Call. Come up with a settlement offer and get that thing done. Lowering your util from that 110+% will do a big change. Then fall off will be the end of it. Good luck and keep us updated for other members also. Good Luck!

Re: Discover CO past SOl

Saltlife22 — Mon, 12 Sep 2022 21:18:37 GMT

@gdale6 wrote:
Well with the further info on the utilization being its overlimit you are getting hit with a Fico penalty for being over 89% of the cards CL on top of the regular cost in points of the util and it being a larger part of your overall util its quite possible you could get a 20-30 Fico point boost for taking care of it. I would move to settle for less than full balance.

I do intend to settle for less than full balance. Now just how to go about it without resetting SOL. I'm in Florida. Still gotta do some research.

Re: Discover CO past SOl

Saltlife22 — Mon, 12 Sep 2022 21:20:24 GMT

@FireMedic1 wrote:
@Saltlife22Thats fine. As @gdale6 posted. No to repeat things. Call. Come up with a settlement offer and get that thing done. Lowering your util from that 110+% will do a big change. Then fall off will be the end of it. Good luck and keep us updated for other memebrs also. Good Luck!

Thanks for the help and guidance

Re: Discover CO past SOl

FireMedic1 — Mon, 12 Sep 2022 21:58:25 GMT

@Saltlife22 wrote:
@gdale6 wrote:
Well with the further info on the utilization being its overlimit you are getting hit with a Fico penalty for being over 89% of the cards CL on top of the regular cost in points of the util and it being a larger part of your overall util its quite possible you could get a 20-30 Fico point boost for taking care of it. I would move to settle for less than full balance.
I do intend to settle for less than full balance. Now just how to go about it without resetting SOL. I'm in Florida. Still gotta do some research.

Im in Fl also. Nothing at all can change the DoFD in any state. Your thinking of the statue of limitations or SOL. If its a collection agency and you make certain moves. That can reset the SOL to sue. The DoFD still doesnt change. So 02/24 it will be gone.

Re: Discover CO past SOl

Saltlife22 — Mon, 12 Sep 2022 22:03:47 GMT

@FireMedic1 wrote:
@Saltlife22 wrote:
@gdale6 wrote:
Well with the further info on the utilization being its overlimit you are getting hit with a Fico penalty for being over 89% of the cards CL on top of the regular cost in points of the util and it being a larger part of your overall util its quite possible you could get a 20-30 Fico point boost for taking care of it. I would move to settle for less than full balance.
I do intend to settle for less than full balance. Now just how to go about it without resetting SOL. I'm in Florida. Still gotta do some research.
Im in Fl also. Nothing at all can change the DoFD in any state. Your thinking of the statue of limitations or SOL. If its a collection agency and you make certain moves. That can reset the SOL to sue. The DoFD still doesnt change. So 02/24 it will be gone.

Oddly enough it has never gone to a collection agency and Discover never pursued me for it or even bothered me about it (knock on wood). No collections have ever been added to CR. So I just didn't want to restart the SOL with the OC Discover. Not sure if that is a thing with an OC or only CA.

Re: Discover CO past SOl

FireMedic1 — Mon, 12 Sep 2022 22:19:30 GMT

You'll be fine. I'd get on it before it does hit a CA. Another headache and big time score loss if a CA takes over.

Re: Discover CO past SOl

gdale6 — Mon, 12 Sep 2022 23:49:03 GMT

Here is some good info on FL SOL.... No I have nothing to do with the law firm

https://www.alperlaw.com/florida-judgment-collection-laws/statute-of-limitations-debt-florida/

Re: Discover CO past SOl

Saltlife22 — Tue, 13 Sep 2022 02:38:23 GMT

@gdale6 wrote:
Here is some good info on FL SOL.... No I have nothing to do with the law firm

https://www.alperlaw.com/florida-judgment-collection-laws/statute-of-limitations-debt-florida/

Thank you very much.

Re: Discover CO past SOl

OmarGB9 — Tue, 13 Sep 2022 04:21:38 GMT

Just a tip: if you're planning to settle/pay in full anyway, whether the SOL is reset or not is a moot point as the debt will be taken care of and there'll be no debt you could possibly be sued for.