charge off question

[Anonymous]

Quick question, I’m still fairly new to all this.....Last month I paid my charge off with capital one. I accepted a settlement amount. I’ve checked my credit reports and there is still a balance and it looks like I still owe $113. (Which is what was left after I paid my settlement amount). I thought if I paid the settlement amount they gave me my balance due would be 0. Is this not how it works?  reason i ask is because we want to try for a mortgage in the next few months and if they pull my credit it still looks like i owe $130. 

[thornback]

It should reflect a $0 balance so long as you had a settlement agreement with CapOne for the amount you paid.   

Some creditors (I cannot confirm whether CapOne is one of them), for whatever reason, will first update the balance to reflect the amount settled, and then, the following month, update the balance to $0.   

So - you could wait til their next monthly update to see if the balance is updated to $0 and if so, great, if not - contact them. 

Or -- you can just reach out now and see what they say.   If you can't resolve it via a simple phone call, you'll need to dispute. 

Welcome to the forums!

[Anonymous]

In addition to waiting 30 days after settlement, I would send a letter certified return receipt with a copy of the settlement agreement to them asking them to update the CRs.

[Anonymous]

Yes I remember reading capital one is one of those lenders where the standard practice is as described above.