Alliance One Capital One Charge off CO reporting

[Anonymous]

Hi Everyone. I have a charge off with capital one that Alliance One is collecting on. The debt is still with cap one, alliance one is their collection dept. The charge off was for 2,000 and they offered a settlement of 600. I am looking to buy a home next year and a new vehicle. Credit score is around 570. Trying to rebuild now and this is the last CO to take care of. My question for everyone is should I pay in full or settle? Also, how does capital one report after you pay. If you settle, do they report as settled in full or do they add special comment settled for less than full balance?can someone share verbatim what they saw on their credit report? If you pay in full, do they report as PIF on report and is this better when approaching lenders? Or does capital one use the same reporting whether you PIF or Settle. If so, I’d rather settle and save the rest of the money. All responses welcome.
Lastly, any updated luck on cap one goodwill saw some older threads? Thank you all

[FireMedic1]

It will update the same way your other CO's reported that you paid. If your seeking a home. PIF looks better than settled for less than amount owed. Congrats on cleaning up your reports. Cap1 doesnt do GW's any longer. Welcome to the forums!

[Anonymous]

Thanks. Pleasure to be apart of the community! Specifically, does anyone know if cap one includes special comment? If you settle. And are chance greater of getting approved for a cap one line of credit sooner if PIF. How much could I expect my score to rise by? Hopefully above 6’s.

[FireMedic1]

Maybe a year out. They are forgiving. Depends on what your total util is presently to know your score bump when PIF/Settled. Settling a debt means that you have negotiated with the lender, and they have agreed to accept less than the full amount owed as final payment on the account. The account will be reported to the credit bureaus as "settled" or "account paid in full for less than the full balance. If PIF it will reflect that. Wont say settled for less.

[Anonymous]

The verbiage will be along the lines of “chargeoff, paid, settled for less than full amount” if you settle, or “chargeoff, paid in full” if you PIF. It’ll be clear to all who read it what the outcome was.

I honestly don’t think one or the other matters more in seeking future credit from them. People have been approved right out of bankruptcy for a card, after burning them in that bankruptcy.

As to your score, it won’t likely jump up - CapOne updates chargeoffs every month. You’ll get one final update to reflect the paid status, and that’s it. Then it can begin to age and you’ll slowly recover points. Scores only jump if that last derog is removed from your reports, which @FireMedic1 mentioned above, CapOne will not do.

[FireMedic1]

You'll want to act before Cap1 sells it to a CA. In FICO scoring, as long as the charge-off is only being reported by the OC (original creditor) and not a CA (collection agency) it will count in both your individual and overall revolving utilization calculations. This why a charge-off can be worse than a collection...collections being reported by CAs do not factor in util calculations.

[Anonymous]

Thanks all! Just paid alliance one in full! any chance I could goodwill them for being more responsible by paying the 2k in full instead of the 600 settlement they offered? Even removing some lates would be nice? Anyone have any recent experience with this or new insights?

[FireMedic1]

Congrats. One less headache. But Cap1 doesnt do any GW's. One late is a LONG shot. But more than that. Sorry not good news.