Capital One Repossession

[Blitz1030]

Long time lurker...I have paid off all except one item on my credit report.  Last one is a repossession from March 2015 for Capital One Auto listed as a charge off.  Capital One sent me a settlement agreement $1,200 on $7760 balance.  It is still showing the balance of $7760 and updated last month.

I can't afford to pay in full and buy a car but I can afford the settlement.  I am afraid if I settle it will reage the debt and kill my score.  Not exactly sure how to proceed.  I don't want to crush my credit score before applying for a car loan but am pretty sure I will need to handle this before I can apply for a loan.  

Any recommendations greatly appreciated!

[Brian_Earl_Spilner]

It doesn't re-age the debt. That would be illegal. Making a payment would re-age the Statute of Limitations. However, since this is a settlement, that wouldn't apply to you. Once you make the payment, it'll update a final time before aging off.

[Blitz1030]

Thanks...sorry wrong terminology.  What I meant by reaging is this....will it look like a more recent collection if I settle it?  It has been continuously reporting as a balance so is it calculating based on a collection dated 03/2015 or 02/2020 because it still reports.

I don't think Capital One will ever do a PFD even if I pay in full like everyone else has so I figure I have to pay it. 

[Brian_Earl_Spilner]

It's extremely hard to get a goodwill adjustment or PFD from Cap1. It can be done though.

It reports every month. Doesn't matter when it reported. After you pay them it'll report one more time, hopefully with a 0 balance, and it will age off.

[Blitz1030]

Thanks for the feedback.  I appreciate it.  Im just going to pay it and move on.