CapOne Charge Off affecting Utilization

[Anonymous]

I am in the same situation, wanting to buy a home with a USDA loan, and my EQ FICO is 629.  I have an old charge-off from Discover that I'm making payments on.  When I do the EQ score simulator, it is taking into account the old charge off - putting me at 118% utilization.  I'm wondering if that is correct, or just a flaw in the simulator.  OP: please update when you see results.

[scmami]

Okay, results are in. I went from 587 to 620 today when CapOne posted the payment. Although my one CC is at $0, I still have a 39% utilization because CapOne isn't reporting a $0 balance... I recently added myself as an AU on my hubby's 2 year old CC, so hopefully that will offset the balance reporting some. If not, the Simulator is showing an increase to 670-720 if I completely payoff CapOne. It may be worth it to do. I had a "settlement", but they are known to report the balance and notate "settled with a remaining balance"

[scmami]

Last update on this one... CapOne reported $0 finally. My score went to 631 which is 65 points higher than when I started this post. For future MyFico folks, don't let Capital One scare you from settling!

[CreditGuy03]

How did you get them to settle? I have a card that has a 4600 balance charge off and the credit limit is 5000.

I know this affecting my util big time.

[scmami]

I just called them! They have long since stopped calling me so I called and told them I wanted to settle. They offered 80% and would not budge under 70%. I did a lump sum, but they were very open to payment plans.

[Yanzi2002]

I just found this post after days of searching and feel so relieved! I owe $2800 to capital one on a charged off card. No settlement is being offered so I'm paying in full on the 21st. Utilization is shown as 166%!!My only other credit card is at 5%. Maybe I can expect a nice boost after all. Yay!!

[Shogun]

Yes... that util can make a big difference in your scores.

[scmami]

@yanzi2002 I just asked for a settlement and she offered. I would fully expect a boost to your scores.