How to handle recent Credit One Charge off

[Anonymous]

This last year has been rough and I ended up letting my Credit One card lapse.  Things are starting to get better and I know communication is always the key and I didn't communicate with them.

So, both my Capital One Cards show payments on time.  My student loans just rehabbed, and now Credit One "JUST" reported this as a charge off.

I know I need to contact them before it rolls over to a collection, but I can't pay it in full until likely the end of March.  

So, I'm wondering how I should approach this.  I'm trying to clear up the last few things now because I'm looking at major changes since my student loans rehabed.  

No, this wasn't intentional.  We moved from Idaho to Oregon and things just did not go as expected.  Barely kept up with bills for a bit and Capital One did have missed payments, but never reported a missed payment as I always communicated with them as what was going on.  

Thanks for any advice.

[haleyjen]

I'd contact them and see if you can work out a payment plan.

[gdale6]

You want to pay it off ASAP.

[Anonymous]

I will be contacting them next week. I'll see about Arrangements because I'm not sure I have enough to pay it off this minute.

I'll update I how it goes,

[RobertEG]

You can either offer them a settlement for less, or you can make an offer to enter into a repayment plan.

Note that a repayment plan will set a new SOL period in most states, as any payments against a delinquent debt will usually "reset" the running of the statute of limitations.

That will not be a substantive issue if you make all payments, or if you are still early in the initial SOL period.  However, it may be something to consider.

In either case, you can also include in your settlement offer or your payment plan offer an addtional stipulating that, upon completion of payment, the creditor agrees to deletion of adverse reporting, including the charge-off.

If they agree to that additional term, then you can also get the CO removed prior to its full 7 year plus 180 day normal exclusion period.