Need help on where to start (Creditone closed account and CapitalOne Charge off)

[Anonymous]

Hi everyone,

Covid really hit me hard this past year and I lost my job. My wife and I have credit cards, so it was hard to disperse money and pay rent/bills and choose credit cards to pay. We chose to keep paying hers over mine since she has impeccable credit and did not want to ruin that.

So I have 4 cards total, or did.

I just finally got a new job after being laid off for 6 months, I just found out that today CapitalOne has charged off my one account as of yesterday. Called them to see if I could make the full payment but they said it would not bring it out of charge off status....

I did make an agreement with them on Oct 6th, that if I made a payment of any kind that it would prevent charge off for 60 days. So it hasn't been 60 days, the rep explained I should write a letter to their General Correspondance P.O Box.

I feel pretty lost on where to get started, so I'll explain what is going on below.

My first and oldest card below.

• CapitalOne QuickSilver (Balance of 657.00 but made a $250 payment today) According to the app, it'll bring it current.
• CapitalOne Platinum (Charged off balance of $3400 as of 11/12/2020)
• CreditOne (Closed account not charged off, balance of $1800) I called them and they said it is not charged off yet, if I made a payment to bring my debt under the limit of $1300, they will report it as current. (Don't know if there is any truth behind this?) But planning on it...
• Bank Of America ($4800 but have been making current payments) No lates
• VW Credit of America (Car Loan) current no lates

My score is in the dumps (540 fico) Went from 670 to that... I am hoping that I can get CreditOne to not charge off and report it as current if I bring it under the credit limit, they told me that I can reapply for a new card but they won't reopen that one.

So what are my options here? Obviously, I plan on paying everything off. I am most nervous about CapitalOne, I would like to try and get it resolved rather than a charge off. I really need to boost my scores in the next 4 months.

Any help will be appreciated! 

[Anonymous]

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@Anonymous wrote:

Hi everyone,

Covid really hit me hard this past year and I lost my job. My wife and I have credit cards, so it was hard to disperse money and pay rent/bills and choose credit cards to pay. We chose to keep paying hers over mine since she has impeccable credit and did not want to ruin that.

So I have 4 cards total, or did.

I just finally got a new job after being laid off for 6 months, I just found out that today CapitalOne has charged off my one account as of yesterday. Called them to see if I could make the full payment but they said it would not bring it out of charge off status....

I did make an agreement with them on Oct 6th, that if I made a payment of any kind that it would prevent charge off for 60 days. So it hasn't been 60 days, the rep explained I should write a letter to their General Correspondance P.O Box.

I feel pretty lost on where to get started, so I'll explain what is going on below.

My first and oldest card below.

• CapitalOne QuickSilver (Balance of 657.00 but made a $250 payment today) According to the app, it'll bring it current.
• CapitalOne Platinum (Charged off balance of $3400 as of 11/12/2020)
• CreditOne (Closed account not charged off, balance of $1800) I called them and they said it is not charged off yet, if I made a payment to bring my debt under the limit of $1300, they will report it as current. (Don't know if there is any truth behind this?) But planning on it...
• Bank Of America ($4800 but have been making current payments) No lates
• VW Credit of America (Car Loan) current no lates

My score is in the dumps (540 fico) Went from 670 to that... I am hoping that I can get CreditOne to not charge off and report it as current if I bring it under the credit limit, they told me that I can reapply for a new card but they won't reopen that one.

So what are my options here? Obviously, I plan on paying everything off. I am most nervous about CapitalOne, I would like to try and get it resolved rather than a charge off. I really need to boost my scores in the next 4 months.

Any help will be appreciated! 

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You can salvage some of this, but with it all being so recent, it may not recover as fast or as much as you would like, especially with many lates (some probably severe) and an official CO. What is your goal in 4 months?

How much can you afford to put towards this debt now and monthly?

I would avoid getting another Credit One account. They are low level and you have other active cards, plus it would further lower your AAoA to add a new account. I would focus on paying what you owe to what you already have.

You can pay the Credit One, but since it is closed, I do not believe it will start reporting positively again, plus since it is closed in bad standing it will age off all together in 7 years instead of piecemeal over time and will stay on your reports 10 years. I am not sure how they can report it current when it is already closed.

Cap One is sue happy, so I would work something out with them ASAP, especially since it has heen CO'd already. Whether to settle for less in a lump sum or figure out a payment plan (that you must stick to). They usually will give you the best deal if you can pay in a lump sum. Someone recently said they went for 50% on a recent CO (if I remember correctly), but were willing to do 60% of the balance in a payment plan.

Then you will meed to work on getting your utilization down on your good standing cards: the Cap One QS and the BoA. You did not mention the CL of the BoA, but I am assuming it is maxxed out. Getting your utilization down greatly on those 2 cards may score you some gains. Between the balances on the closed accounts, CO, and high utilization on the remaining open cards, those things are really suppressing your scores because your utilization is over 100%.

Once the Cap One accounts are paid off, you can always start going on GW campaigns to see if they would be willing to remove some or all of the lates.

Did you reach out to any of the creditors for assistance during covid? Many were offering some sort of assistance, have you spoke to them about it now? Were any willing to reduce the payments or interest?

I know you said they would not CO the one account for 60 days, did you get that in writing? I would work my way up the ladder to find someone to assist you with this. Did you speak to a manager or account recovery or just a frontline CSR? I would keep calling until you get results regarding the agreement.

Any arangements you make need to be in writing - email or paper or even SM. Keep a log of everyone you speak to, dates and times. You need to be able to reference to something to make sure they hold up their end of any deal with Cap One and Credit One. They just want to get paid, but you need to make sure you are covered too in any arrangement.

Good luck!

[Anonymous]

It's to my understanding that Capital One will bring my lates on the QS card current from when it first started reporting late from back in June. But...I will reconfirm with them on this, it did say that on the app and emails I received from them about my balance.

As for the Capital One Platinum, I emailed the CEO Richard Fairbank. I explained my situation, I doubt they are going to reverse anything since the charge off is now done as of 11/12. I went into detail of the whole contractual agreement and how I made an agreement with them on that date. The rep from Cap 1when I called, also acknowledged there are notes about the agreement but referred me to send a letter to the General Correspondance PO Box, because the C/O already happened. So I will send them a letter as well along with the email.

When you mean, Cap One is sue happy? Do they not sell off their debt to a collection agency? I do plan on paying my debt, if I cannot resolve the charge off, should I just email them I'd be open to settling? I'd be willing to pay the 50% up front, I have the funds to do so. Do you think it'd be possible to get them to remove charge off if I kept emailing/mailing them afterwards?

We're planning on moving in about 4-5 months, obviously with a bad fico score I doubt I would get approved. I got the income but not the credit. But honestly I'll have to put it on hold until i fix this.

My BoA is getting balanced transferred to my wife's card, the limit is $5,000. She has 0% interest Balance Transfers, so we are buying time with that for 18 months.

As of right now, the Cap 1 QS is reporting as $405 total balance, the payment reflected from what I paid recently.

So next month, I will still have the two remaining balances of $3400 with C/O Capital One and $1800 Closed Credit One. I will definitely not open another Credit One, appreciate your tip on that!

I did reach out to Credit One, but they were unable to make any accomodations. Capital One did defer my payments for a few months but did not offer to lower interest rates. Then I made an "agreement" to not go into Charge Off status, but as we can see they did not honor that for one of the cards.

I really appreciate your advice, LaHossBoss! 

[Anonymous]

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@Anonymous wrote:

It's to my understanding that Capital One will bring my lates on the QS card current from when it first started reporting late from back in June. But...I will reconfirm with them on this, it did say that on the app and emails I received from them about my balance.

As for the Capital One Platinum, I emailed the CEO Richard Fairbank. I explained my situation, I doubt they are going to reverse anything since the charge off is now done as of 11/12. I went into detail of the whole contractual agreement and how I made an agreement with them on that date. The rep from Cap 1when I called, also acknowledged there are notes about the agreement but referred me to send a letter to the General Correspondance PO Box, because the C/O already happened. So I will send them a letter as well along with the email.

When you mean, Cap One is sue happy? Do they not sell off their debt to a collection agency? I do plan on paying my debt, if I cannot resolve the charge off, should I just email them I'd be open to settling? I'd be willing to pay the 50% up front, I have the funds to do so. Do you think it'd be possible to get them to remove charge off if I kept emailing/mailing them afterwards?

We're planning on moving in about 4-5 months, obviously with a bad fico score I doubt I would get approved. I got the income but not the credit. But honestly I'll have to put it on hold until i fix this.

My BoA is getting balanced transferred to my wife's card, the limit is $5,000. She has 0% interest Balance Transfers, so we are buying time with that for 18 months.

As of right now, the Cap 1 QS is reporting as $405 total balance, the payment reflected from what I paid recently.

So next month, I will still have the two remaining balances of $3400 with C/O Capital One and $1800 Closed Credit One. I will definitely not open another Credit One, appreciate your tip on that!

I did reach out to Credit One, but they were unable to make any accomodations. Capital One did defer my payments for a few months but did not offer to lower interest rates. Then I made an "agreement" to not go into Charge Off status, but as we can see they did not honor that for one of the cards.

I really appreciate your advice, LaHossBoss! 

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Honestly, it seems like you have a pretty good plan.

Cap One doesn't sell off the debt quickly to a CA and keep it in house for a bit, I would avoid getting a CA if at all possible.

BTW I forgot to say congrats on getting a new job! It has been very hard for so mamy and I am always glad to see when people get on their feet again.

I would do basically as you outlined yourself above!

Maybe you could have your wife add you as an AU on one of her CCs that has little to no balance and it could help your scores some.

Good luck and let us know how things work out!

[Anonymous]

Good morning everyone,

I wanted to give an update on where everything stands at the current moment from my credit issues.

I have contacted CreditOne and I have until Dec 28th to make a payment of $580 to prevent charge off, I plan on doing that. After bringing my account back from the ledge, I am going to email/mail a letter to the CEO and see if they will be willing to remove my lates.

Capital One's executive team has contacted me about my charged off Platinum card, unfortunately they told me that they have reported everything accurately about the charge off notice and warning and will not reverse their decision...So a losing battle but I won't give up hope, they still have the debt internally and from what I read, they will not offer a settlement? Is that true? Has anyone had any luck with settling?

Capital One Quicksilver card, balance is now down to $357, made two payments on this card but it's still restricted. Contacted Cap 1 today about this and they esclated it, I spoke to their supervisor and they explained that I need to make 90 days worth of payments before they can review and hopefully remove the restriction. So I have to wait until Feb 5th to check again.... But today I have emailed the CEO Richard Fairbanks in hopes they will remove my late from May 2020..

BOA is now reporting as $0 balance, but CRA still have not reflected it and I am hoping it'll improve my scores by a tiny bit.

I just realied I have 4 inquires that are due to fall off Feb 2021, so hopefully that will help the scores by a couple points. 

Still a uphill battle but there's still hope! I am hoping I can salvage Credit One and the QS card to save my report from being complete trash.

[OmarGB9]

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@Anonymous wrote:

Good morning everyone,

I wanted to give an update on where everything stands at the current moment from my credit issues.

I have contacted CreditOne and I have until Dec 28th to make a payment of $580 to prevent charge off, I plan on doing that. After bringing my account back from the ledge, I am going to email/mail a letter to the CEO and see if they will be willing to remove my lates.

Capital One's executive team has contacted me about my charged off Platinum card, unfortunately they told me that they have reported everything accurately about the charge off notice and warning and will not reverse their decision...So a losing battle but I won't give up hope, they still have the debt internally and from what I read, they will not offer a settlement? Is that true? Has anyone had any luck with settling?

Capital One Quicksilver card, balance is now down to $357, made two payments on this card but it's still restricted. Contacted Cap 1 today about this and they esclated it, I spoke to their supervisor and they explained that I need to make 90 days worth of payments before they can review and hopefully remove the restriction. So I have to wait until Feb 5th to check again.... But today I have emailed the CEO Richard Fairbanks in hopes they will remove my late from May 2020..

BOA is now reporting as $0 balance, but CRA still have not reflected it and I am hoping it'll improve my scores by a tiny bit.

I just realied I have 4 inquires that are due to fall off Feb 2021, so hopefully that will help the scores by a couple points. 

Still a uphill battle but there's still hope! I am hoping I can salvage Credit One and the QS card to save my report from being complete trash.

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Definitely ask Credit One for GW. There have been several success stories as of late. 👍

I believe there have been instances where people were able to settle with Cap One, though generally it's on much older debt. But certainly ask.

As for your other card becoming unrestricted, I certainly hope it does, because there have been horror stories of people's cards becoming restricted and staying that way indefinitely.

BoA being at $0 is good, hopefully it'll reflect on your reports within a couple of months..

As for your inquiries falling off, sorry to say, they became unscoreable as of Feb 2020, so you've already gotten any point gains from that.

[Anonymous]

@OmarGB9  Thanks for your input, once I make the initial payments for Credit One, I will definitely contact the CEO's email to see if they will remove the lates.

Hopefully that can help my score. 

I do not have an issue with paying off the total debt amount for Cap1, if I were to ask to settle, would it be best through email or mailing them a letter asking for an offer or simply telling them how much I can absolutely pay? I know they are tough to work with from what I read around here.

As far as the card restriction goes, I do not care if they never open it back up. As long as they are willing to remove the late, I am happy with that and will gladly open a new card elsewhere once I can get a better grip of things. 

I appreciate the tip about the inquiries, I kinda figured they wouldn't count but it's nice to not see them after Feb.

[OmarGB9]

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@Anonymous wrote:

@OmarGB9  Thanks for your input, once I make the initial payments for Credit One, I will definitely contact the CEO's email to see if they will remove the lates.

Hopefully that can help my score. 

I do not have an issue with paying off the total debt amount for Cap1, if I were to ask to settle, would it be best through email or mailing them a letter asking for an offer or simply telling them how much I can absolutely pay? I know they are tough to work with from what I read around here.

As far as the card restriction goes, I do not care if they never open it back up. As long as they are willing to remove the late, I am happy with that and will gladly open a new card elsewhere once I can get a better grip of things. 

I appreciate the tip about the inquiries, I kinda figured they wouldn't count but it's nice to not see them after Feb.

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Good plan, though I would wait until your account is back current before asking for GW for better odds.

As for Cap One, you could just call and try to negotiate over the phone. Much quicker than writing/emailing back and forth.

Alright, so long as you know what's at stake with the restricted account.

Very true, and there's something to be said about having less inquiries showing overall; while FICO-wise they may stop counting after a year, when applying for credit, some lenders will still count them and consider them in their credit decision. Less inquiries showing will of course yield better odds (in some cases).