C/O from overdraft

[Greenmach]

Hey all!

Real quick question. I want to pay off an old C/O from ORNLFCU $535 that was from I'm assuming overdraft protection. It updates every month so def killing my scores. Now the question being it's from 05/18 but account was opened 08/07. When I pay this what is my best course of action?  Ask for a PTD or ask for the lates to be removed and try and turn it into a good one?  Really idk the likelihood of either but, I haven't seen much about how to handle late overdrafts in the forum. Also, does that balance count against my overall UTI on scoring models?

[simplegirl]

You definitely want to pay it to stop the monthly updating. You can ask for the PTD but if they say no you should still pay it and afterwards start sending goodwill letters to have the negative information removed. Also it is most likely counting in your overall utilization.

[RobertEG]

Is your question whether you should ask only for deletion of the reported lates vs. requesting deletion of the entire account?

If it is former and the account is thus positive (i.e. absent any reported derogs), and if its age since opening is older than your current average age of accounts, that would be preferable, as you would retain its postive effect on AAoA while removing the adverse impact of the derogs on payment history scoring.

[Greenmach]

Yes @RobertEG that is the question. Is that something that I can ask for?  By PIF the 2yr old balance, can it be turned into a positive account by removing all the CO's?  I am not even certain they will or can be done. I just don't want to look dumb if it's not even possible. 

[RobertEG]

Yes, it is possible, and no, it is not a dumb request.

Pay for deletion offers apply to any information that you wish deleted in exchange for your offer to pay, and are made all the time.

However, debt collectors are much more receptive to granting PFD requests than are creditors.

Your PFD request would be to a creditor/bank, who is usually much less receptive to accept, particulary if the request deletion is for a major derog, such as a charge-off.

A primary obstacle is that the common credit reporting manual used by each of the big-3 CRAs includes specfic instructions that furnishers are not to report deletion of their accurate reporting based solely on payment of the debt.  Some creditors stick closely to compliance with that policy, but others will succumb to the $$,

You never know, so give it an offer......

...

[Greenmach]

Thank you so much for clarifying. I was unsure if that was even plausible.  Either way I'm of course going to pay it but, the hope is still there. 

[Anonymous]

I don’t think I’ve ever read of a CO being updated to a non-CO positive account, but I have read of PFDs by OCs, which are rare.

[OmarGB9]

Yea PFD with OCs are extremely rare. Not impossible, but highly unlikely. It's certainly worth a try asking, but if not, as mentioned above, you should still take care of it to stop the monthly updating that's suppressing your scores.

[Anonymous]

What does AAoA mean?

[simplegirl]

Average Age Of Accounts