I've been on a mission to rebuild my credit for about 6 months and just found this forum — wish I had found it earlier. I've paid off all of my collections/charge offs except for two Capital One charge offs with DoFD 5/2015 and 6/2015. Together, the total is a little over $6k. I owe it, and my intention is to pay it off with the next ~6 months. Should have done this years ago, but here we are. My question is primarily one of timing: in an ideal world, I'd like to call Cap One and get on a payment plan of $800-$1000/month, but I'm worried that they'll basically turn around and sue because I would've re-opened the SOL. It's already reporting every month, so I'm not worried about the date of last update, but basically, do I need to have the full amount in hand before reaching out to them?
Welcome @ewstgif Making a payment will update the account and ding you. If you could save up and PIF 1 at a time or settle for less would be best. If paying it down in payments. The balance will lower itself until paid and update each month with the newest balance.
Thanks, @FireMedic1 I had a feeling saving up first would make more sense since I'll have (slightly) more negotiating power. Not too worried about it updating because it's reporting lack of payment every month anyway.
I settled with Cap1 in the past and because of the age of yours (5 years) you will have lots of negotiating power - think easily < 40% of the total. Especially if you can pay it in a lump sum, you might be able to pay even less. The down side is that it will say "settled for less" as a remark on the credit report and you "burned" Cap1 which will hurt you longer if you desire to get an account with them again. From all other angles it will look like you paid it to the FICO scoring algos, no longer past due, no longer reporting, and the debt will be satisfied legally. Just something to consider. Good luck!
Yeah paying it once settled or PIF. It will only be 1 update hit. Not monthly hits even though you'd be paying it down. Good Luck! Keep us updated!!!!!!!!!!!!!!