Not sure what I should do?

[ACN323]

@Girlzilla88 I will definitely do some research and try to get that contact info.  The settlement i agreed on with the law firm who has obtained the debt is for the full amount, so I don't know maybe someone at Cap1 will cut me a break 😜

[Anonymous]

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@ACN323 wrote:

@Girlzilla88 I will definitely do some research and try to get that contact info.  The settlement i agreed on with the law firm who has obtained the debt is for the full amount, so I don't know maybe someone at Cap1 will cut me a break 😜

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Are you paying cap one on the charged off account, or a collection this firm bought from cap one? Do you have a seperate collection on your report for this? Because in this last post it kind of sounds like you're actually dealing with a CA and not the OC. If they bought the debt outright, vs being contracted to collect for cap one, could effect your approach.

[ACN323]

@Anonymous Ratchford Law Group is the one who obtained the debt from Capital One. So that's who I'm currently paying, as a charge off.

[Anonymous]

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@ACN323 wrote:

@Anonymous Ratchford Law Group is the one who obtained the debt from Capital One. So that's who I'm currently paying, as a charge off.

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"obtained" is an ambiguous term. Are they contracted by cap one, or did they buy the debt from them? These are 2 different things, with potentially different ways to approach them.

If they are collecting on behalf of Cap one, you can still potentially work with cap one to have them pull the collection and let you pay it off with them. boom - collection deleted. If they bought the debt from cap one, your cap one account will be a zero balance and you aren't paying it off - you are paying off an account owned by a collection agency (so tallking with cap one about the collection would be pointless - they wouldnt own the account any more)

[ACN323]

@Anonymous Good question. I think I threw my original notice away, but it says current creditor Capital One Bank, on the most recent letter I have from them confirming my automatic payment withdrawal for the month. So I think they are collecting on Capital One's behalf? On my credit report it's just listed as my closed capital one acct and the balance updates each month just on that and under no other company etc. 

[Anonymous]

@ACN323 Sorry to interject, it sounds like the law firm is collecting on behalf of Capital One. Once you get the account paid off, you can try goodwilling Capital One. As it stands that chargeoff is really hurting your utilization. If you manage to get to the right person, they might be able to remove the charge off (I wouldn't bank on this however).

To be honest with you, it sounds like you are taking all the right steps. Do you have an active car loan or personal loan or student loan? 

Also it is normal for there to be some descrepancy between your Experian, Equifax and Transunion score. Try not to let it bother you. This can happen for a number of reasons unfortunately. 

[ACN323]

@Anonymous No worries, I appreciate the info! I don't have anything besides the 2 reporting cards and 1, AU acct. I don't have any student loans, or a car payment. Our mortgage is in my husbands name. I'm a stay at home mom, my husband is our sole income earner, so mostly everything is in his name for that reason. There aren't any life, credit related things I need to boost my score for at the moment, but I just have a ton of anxiety about this charge off. I just feel bad to be like hey, let's throw $2,400 at this charge off, that I got myself into a few years ago... so that's why I've been just doing the $200 a month for now. Good to know it's common for the score gaps. The original limit was $2500 and the amount charged off was $3096. My next payment should bring me under the limit, by a whopping $4. I might try do an extra $100 this month. Will my score increase at all, with my utilization coming down, or not until it's at $0?
Thanks for the info and encouragement! 

[Anonymous]

Thanks for clarifying and for the additional info. Isn't it crazy how all the late fees and over the limit charges boost the amount owed?

I am going to reference a post from MaizeandBlue regarding credit card utilization thresholds. You usually see score boosts by getting a revolving account under these thresholds: 

"The utilization thresholds for an individual credit card are 28.9%, 48.9%, 68.9% and 88.9%.  Above 88.9% utilization is considered maxed out. (MaizeandBlue)"

I did the math (hopefully its right, math is not my strong suit):

28.9% ($722)

48.9% ($1222.50)

68.9% ($1722.50)

88.9% ($2222.50)

As you get below these dollar amounts, you should see some point increases to your score as your utilization is lowered. If you can divert extra funds to help pay this down then great. I would also keep the current situation in mind, so if you can't spare the extra funds now then don't. Also lots of people worry about debt and thanks to this current crisis more people than ever are in your shoes. Try not to let it get to you. Having a plan and acting on that plan is the best thing you can do. 

Remember time is your best friend. As the chargeoff ages, it will hurt you less.

[ACN323]

@Anonymous It really is crazy. I almost thought it was being reported inaccurately when I first saw the amounts and then learned, nope those are late fees etc. Definitely learned my lesson with this charge off. Never again! Thank you for the utilization threshold chart. I will definitely be screenshotting that to refer back to as a guide. I really appreciate all of the help and info! I will do an update once I pay some more down and hopefully see some score gains. Hoping to see my Citi graduate the next time around, with future score increases 🤞. Take care, and thanks again! 

[OmarGB9]

Yup just keep chipping away at the debt, I know from experience how frustrating that is, trust me.

But yes you should see some small bumps as you pay it down and cross those thresholds Maize posted above. Once it is paid to zero, if that's your only baddie, you should see a decent bump and over time more small score increases as it ages into the past!