CapOne Charge Off affecting Utilization

[scmami]

Hi all....one specific question...I have 2 accounts affecting my (low) credit score. One is an Orchard Bank card $300cl....the other is a charged off but not sold CapOne card reporting a $2053 balance. So my utilization is at 222%!

My EQ FICO is 566. My question is, if I pay the CapOne will I see an increase?I would go from 222%to 7% Utilization.
I have lots of old baddies (charge offs and a 3.5 yr old foreclosure)but in the last 3 years I have only one late payment one year ago.

[AndySoCal]

I think you would how much I wont guess.

[scmami]

The Score Simulator says 628-678 ....I can't imagine it would get over 100 pts with all of my other history,but I just want a 640!

[MarineVietVet]

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@scmami wrote:
Hi all....one specific question...I have 2 accounts affecting my (low) credit score. One is an Orchard Bank card $300cl....the other is a charged off but not sold CapOne card reporting a $2053 balance. So my utilization is at 222%!

My EQ FICO is 566. My question is, if I pay the CapOne will I see an increase?I would go from 222%to 7% Utilization.
I have lots of old baddies (charge offs and a 3.5 yr old foreclosure)but in the last 3 years I have only one late payment one year ago.

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I agree that lowering your utilization that much should result in a very nice gain. How much I can't say.

[tsever01]

I have a foreclosure from less than 3 years ago and two charge offs and I just hit 681.  I have a lot of good on my report though.

[Familywantsahouse]

My husband had a similiar profile 2 months ago. I have gotten 9 baddies deleted since then and he's seen about a 75 point increase. The one baddie I didn't realize was hurting us the worst was a nearly 7 year old cap1 charge off. His utilization is over 100%.

Fico score simulator says that's worth 100 points to pay it down. I'm trying to negotiate a settlement and sending out GW's like mad for an early deletion (it'll age off in 6 months, but we hope to get a mortgage well before that) I can PIF, but that will hurt my reserves especially since we paid out a lot for all the PFD's.

I'm already there for FHA and USDA Direct, but we're considering relocating to a cheaper COL area and need the 640 for USDA Guarantee program in that area.

NCO is "servicing" my cap1 debt. I'm hoping they'll take a settlement and just report a 0 balance (that's the offer I made)

[scmami]

Thanks for all of the feedback!! I do have reestablished credit since all of the bad things on my credit, so hopefully this will help! This excites me!! I'll have to post my results when I get them.

[scmami]

I am trying for FHA or USDA guaranteed as well. Seems like in order for them to overlook the bad for USDA Guaranteed my DH and I need to be at minimum 640. My DH score is 619, but he has a similar issue with the utilization. I am going to tackle his accounts the same way. Familywantsahouse-I hope all works out for you!!

[scmami]

I know this is an old thread, but I wanted to update with the status as many don't do. I should have an answer to my question in about 2 weeks . I settled with CapOne for 70% and paid my credit card down to $5. Credit card reports on the 30th and CapOne I think the 15th....Guess I'll be able to find out how well the Fico Score Simulator works! My only concern is that CapOne may report the unpaid/settled/remaining balance even though we legally settled for less than full. I hear they are known to do this. I will be sure to report back as soon as I find out!

[Starr79]

I am curious how accurate the simulator is myself... so keep updating