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How does charge offs affect revolving credit?

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gagirl82
Regular Contributor

How does charge offs affect revolving credit?

I just pulled my credit and noticed that I have a capital one charge off being factored as revolving credit.  If the account has been charged off why is it considered revolving?  Also what should I do to get the account cleaned up?  I know that capital one is not easy to work with which is why I have not tried to clean the account up yet. ...but I guess now is the time.  Any advice will be appreciated!

Message 1 of 17
16 REPLIES 16
randyrhodes
Established Contributor

Re: How does charge offs affect revolving credit?

Even tho its charged off it still calculated into utilization. The only way to get it to not be factored is to pay it in full or settle with them for a zero balance to be reported. Good luck.
Message 2 of 17
gagirl82
Regular Contributor

Re: How does charge offs affect revolving credit?

Would you happen to have any knowledge on settling a charge off with capital one?

Message 3 of 17
randyrhodes
Established Contributor

Re: How does charge offs affect revolving credit?

Not I. Never had one of their cards. Someone on here surely does tho. Perhaps guines56 or RobertEG or gdale will be along shortly. They'll be better suited to assist you with this than I. Best of luck
Message 4 of 17
Darrell82
Established Contributor

Re: How does charge offs affect revolving credit?

 you can settle that right through capital one. since it is a charge off ,.




Message 5 of 17
RobertEG
Legendary Contributor

Re: How does charge offs affect revolving credit?

When a debt is charged-off, it is an internal accounting measure that permits them to recoup a portion of the bad debt.

A charge-off does not relieve the consumer of continued obligation for the entire debt, just as if they had not charged the expected loss to bad debt in their books.

 

From the pserspective of the consumer, the reporting of a charge-off places a formal statement in their file that a current creditor has assessed them as a consumer who is unilikely to pay their debt.  A very negative assessment that both hurts their score and can impact the willingness of others to thereafter take a risk at lendng to a consumer who is considered as one who is likely to stiff a debt.

 

All other aspects of the OC account, including its type and remaining balance, are unaffected by the CO.

Its balance is still accrued debt under their revolving line of credit.

You have an account with unpaid debt, and if they still own it, you can pay the debt the same as any other delinquent account.

 

Message 6 of 17
gagirl82
Regular Contributor

Re: How does charge offs affect revolving credit?

Ok, but once I pay the debt what affect will the payment have on the charge off?  I am trying to figure out what approach I should take to increase my score.

Message 7 of 17
gagirl82
Regular Contributor

Re: How does charge offs affect revolving credit?

Ok thank you! I did not know who I should pay because there is a collection for the Capital One account as well.

Message 8 of 17
gagirl82
Regular Contributor

Re: How does charge offs affect revolving credit?

Ok. Thank you for your help!

Message 9 of 17
DaBears
Senior Contributor

Re: How does charge offs affect revolving credit?

Is the charge off showing a balance? Is there a CA listed on your credit reports for the same account? A charge off is a major derogatory and will affect your score for nearly the entire 7-7.5 yrs until it is removed. Paying a charge off in full might give you a score bump, but it depends what else is negative listed on your credit report(s)

 

 

DaBears

Message 10 of 17
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