Fico Simulator Question...REVOLVING BALANCES!!!!!!!!!!!

[terrymurph]

Guiness56 I am sure it will it have already seen a significant rise in score when the first payment posted.

[terrymurph]

This is a response to Freshstart2020 i paid the OC, and i set up payment arrangment to pay 517.00 a month for 3 monts. That's basically what i spent on the card  they agreed they  would credit back the late fees and overlimit fees, and consider the account paid in full not settled in full.  I also made sure to get it all in writing before the first payment was made.

[terrymurph]

Thank you for the insight hauling. i appreciate all of your responses.

[AndySoCal]

I presume you have pulled the credit report since your first payment posted.  How is creditor reporting the trade line status? IE  current Charge off now paying etc.  Is the balance being reported as 517.00 not the balance that made you over the limit? If the balance is below the credit limit now that would be why  you received most of the increase in the score.

[terrymurph]

In the current section part it says Bad Debt/Collection. And the balance has just been updated to what i paid it down to currently. So it has received a significant increase by being under the limit but it still has 1416 owed on it and the limit is 1550.

[Freshstart2020]

When you say an increase, what type of increase did you get? How many points?  The only reason I ask is, I am in a similar charge off/collections dispute. There is a capital one credit card that has been charged off for $1266.00.   However, it's not my debt. I know, I know I shouldn't pay it. I have disputed it and it keeps coming back as my debt verified. I have called capital one and they are unable to find it however, I did have a card with them that was paid and I closed the account. The CRB is verifying the debt only because each time they call they are verified the debt that I had NOT the debt in question.   Now, I am going to pay it because....I have no other cc on my report. This has my revolving percentage at 100%. I can't get another card with a high balance that will increase my 

utilization percentage.    Here is the way it reports:

CAPITAL ONE

Address:

PO BOX 30281

SALT LAKE CITY, UT

84130

(800) 955-7070

Status:

Account charged off. $1,266 written off. $1,266 past due as

of Jun 2010.

Status Details:

This account is scheduled to continue on record until Dec

2015.

This item was verified and updated on Jun 2010.

Date Opened:

12/2007

Reported Since:

01/2008

Date of Status:

08/2009

Last Reported:

06/2010

Type:

Revolving

Terms:

NA

Monthly Payment:

$0

Responsibility:

Individual

Credit Limit/Original Amount:

$500

High Balance:

$1,266

Recent Balance:

$1,266

Recent Payment:

$0

Account History:

Charge Off as of Jun 2010, Aug 2009

150 days past due as of Jul 2009

120 days past due as of Jun 2009

90 days past due as of May 2009

60 days past due as of Apr 2009

30 days past due as of Mar 2009

Balance History:

05/2010 $1,266

04/2010 $1,266

03/2010 $1,266

02/2010 $1,266

01/2010 $1,266

12/2009 $1,266

11/2009 $1,266

10/2009 $1,266

09/2009 $1,266

07/2009 $1,158

06/2009 $1,054

05/2009 $987

04/2009 $921

03/2009 $857

02/2009 $757

01/2009 $697

12/2008 $738

11/2008 $738

10/2008 $659

09/2008 $602

08/2008 $624

07/2008 $600

Limit High Balance History:

Between Jul 2008 and May 2010, your credit limit/high balance was $500

Creditor's Statement:

Account closed at credit grantor's request.

[llecs]

Lilman8406, know that once the balance reaches $0, the balance and CL are removed from scoring. If you set up a payment arrangement for 3 payments, you could see a gain after the first two, but you'd likely see a score drop when the third payment posts and especially if the $1550 CL helped and/or the TL helped your mix of credit (only helps if a balance). However, there's really no alternative. They can report a late and interest every month up until paid and setting up this arrangement prevents further score damage via a CA, PR, added interest, etc.

The score simulator would be off in your case because it is assuming that the TL will remain as an open, positive account.

[terrymurph]

FreshStart2020i n your situation I would not pay this, because when you pay it you verify that the debt is yours.  This takes away any leverage that you may have.  If this particular account does not belong to you then go to your local police dept and file a proper police report because this sounds like a case of identity theft.  Once you do that send copies of the police report and a formal short and to the point dispute explaining your situation. Make sure you include the officers name you spoke with and the contact information for the police dept.  I have had to do this before and all of the accounts in question were removed within a weeks time.

P.S.. I would also send over a copy to Capitol One with the account number that shows up on your report, because if they have no info how is it coming back verified, something smells fishy.  And make sure you quote the partial account number showing up because you don't want your other account to be removed by mistake.