Mortgage forum suggested asking here

[Anonymous]

I have an old Cap One credit card CO from late 2009. I have recently thinking of buying a home.

I pulled my scores from CCT. The co is listed & reporting co monthly. However it isnt included in my DTI or Util %.

Then I pulled scores from myfico. Co is reporting monthly as CO. The difference is myfico includes this acvount in my dti & utilization.

The odd thing is my scores are virtually identical. Im wanting to get a mortgage & my mortgage scores are right at or slightly above 640. I cannot afford to lose points.

So my question is, do I pay the settlement amount and what effect does that have on scores? If i wait several months I could ask for early removal but then theres a chance for a debt collector to buy the account.

I have already asked Cap One for pfd they said no. I doubt they'll do an early remival either.

Any advice before I screw this up by paying or not paying?

[Anonymous]

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@Anonymous wrote:
I have an old Cap One credit card CO from late 2009. I have recently thinking of buying a home.

I pulled my scores from CCT. The co is listed & reporting co monthly. However it isnt included in my DTI or Util %.

Then I pulled scores from myfico. Co is reporting monthly as CO. The difference is myfico includes this acvount in my dti & utilization.

The odd thing is my scores are virtually identical. Im wanting to get a mortgage & my mortgage scores are right at or slightly above 640. I cannot afford to lose points.

So my question is, do I pay the settlement amount and what effect does that have on scores? If i wait several months I could ask for early removal but then theres a chance for a debt collector to buy the account.

I have already asked Cap One for pfd they said no. I doubt they'll do an early remival either.

Any advice before I screw this up by paying or not paying?

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Since it is updating monthly, paying it cannot hurt you at all scorewise. However at any time Cap One can send it to a collector, and you may end up with a collection to go along with the CO...

[Anonymous]

If it's been CO since 2009 then to me there's no sense in paying it off now. Do you know the DoFD? When does the report say it'll come off? At this point it's too late for Cap 1 to sell the debt to a CA and even if they do, both the CO from Cap 1 and the CA account would fall from when you first became deliquent. I had a Cap1 CO from 2009 too and it was sold to a CA. I never did anything about the debt but it was due to come off May or June but apparently fell off before then because my recent pull doesn't show it on any report. And  I was able to get TU and EX to EE the CA account that bought it (I wish EQ would now too). I'd say wait a little while and save your money & time.

[LShawn08]

Right now your considering buying a house and with that consideration comes choices that could either hinder or help the house buying process. Though the CO will fall off within the year, it's messing with your UTI right now. You should bite the bullet and pay it off, if you can afford it of course. Any point sting it "could" big "could" there inflict would be temporary and it's one less thing to worry about collection hounds coming behind you for.

I've seen more than a few times where people go into their mortgage lender of choice and are dinged super suddenly with collection companies coming after them for old debt. If you have the financial means to make that a lesser than likely chance of happening, do it. 

[Anonymous]

Im really wortied about losing points on my credit score. My lease is up soon & really want to buy.

Does anyone know if Cap One will budge on the early removal ir pfd? The first Dofd was Dec 09

[Anonymous]

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@Anonymous wrote:
Im really wortied about losing points on my credit score. My lease is up soon & really want to buy.

Does anyone know if Cap One will budge on the early removal ir pfd? The first Dofd was Dec 09

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They are sticklers when it comes to reporting. If it IS being updated each month, then paying it will not hurt scores. The only time paying something hurts your scores is when its lain dormant for a couple of years, and then it updates when paid. I would take your reports into a Mortgage broker and ask them if they will require it to be paid or not. Often items nearing exclusion they won't care about, but you never know.

Also it could be dinging your UTI.... if thats the case, paying it will surely help.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:
Im really wortied about losing points on my credit score. My lease is up soon & really want to buy.

Does anyone know if Cap One will budge on the early removal ir pfd? The first Dofd was Dec 09

---

They are sticklers when it comes to reporting. If it IS being updated each month, then paying it will not hurt scores. The only time paying something hurts your scores is when its lain dormant for a couple of years, and then it updates when paid. I would take your reports into a Mortgage broker and ask them if they will require it to be paid or not. Often items nearing exclusion they won't care about, but you never know.

Also it could be dinging your UTI.... if thats the case, paying it will surely help.

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+1

@Anonymous they are reporting monthly...you caught a break because of what @Norman explained above.....

This gives you a decent option of paying it no muss no fuss where as if it were laying around as mentioned 'then' paying it could cause it to look like a 'newly' paid

baddie which would be no bueno.

I agree to inquire with a good 'thorough' broker not a 'skimmer' because you do not want to get deep in your mortgage processing and have a 'pop up' issue...

have the broker 'ask ' UW...nothing is worse than having a hiccup because some schmuck 'thought' it'd be ok buit didn't ask the right ppl...now YOUR house is on the line and the schmuck is 'sorry' ughhh

[RobertEG]

While credit report exclusion seems imminent, as the DOFD wlll likely be at least six months before they reported the charge-off, I would still not rely upon credit report exclusion to shield knowledge of the unpaid debt from a mortgage lendor.

It is common for mortgage lendors to request disclosure of any unpaid, delinquent debt as part of their underwriting process.

Credit report exclusion does not remove the delinquent debt, and they are likely to become aware, and may require its payment, regardless of your three-digit credit score.

[Anonymous]

The amount is only $350. So I can pay it. It does report CO monthly. Myfico includes it in dti & util but CCT does not.
I'd never lie about it in a mortgage app but I dont want it to ruin my chances at a mortgage