Paying a charge off before it's reported - Capital One

[Anonymous]

Hi friends! Currently trying to clean up my credit in hopes to buy a home in the next couple of months. I have a capital one 360 debit account that was charged off about a year ago after going negative to the tune of $475. 

In the name of being cautious, I would like to pay this off before it even reaches the credit bureaus, but I also worry that it will get reported following me paying it off and will still end up dinging my credit. Does anyone have any experience with banks reporting charge offs for the first time AFTER they reach a good standing with the account?

[satio]

While I do not have direct experience with Capital One banking, given that this has not previously been reported as a bad debt or collection, I would expect that clearing it now would prevent it from ever reporting.

Banking accounts in general are not reported to CRAs unless they move into default status and are assigned to collection.

Therefore, if  you pay the balance owed there is no reason for it to be assigned or reported as a collection account.

[FireMedic1]

Probably not. But you'll be listed on ChexSystems and EWS I believe.

[vntrsc]

You asked "Does anyone have any experience with banks reporting charge offs for the first time AFTER they reach a good standing with the account?"

Just a note:  Paying a charged-off account does not return it to "good standing" and does not change the fact that it was charged off.    The account simply becomes a paid charge off.  

[Reviewers]

Paying a charged-off account does not return it to good standing. The account will show as a paid charge off on your credit report unless you somehow either send out a Goodwill letter to Capital One and hope they remove it or just wait for it to eventually fall off in the future.

[jrwa81]

If it's been a year and they haven't reported by now, chances are they are not going to.  Capital One 360 is a checking account.  Checking accounts that go bad aren't typically reported to the credit bureaus (some banks do it, but it's rare).  They are reported to ChexSystems, which is what banks use when you have a negative balance on a bank account and the account ends up being closed if it's not paid, which can make it extremely difficult, if not impossible to open a new bank account anywhere else. 

[OmarGB9]

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@Reviewers wrote:

Paying a charged-off account does not return it to good standing. The account will show as a paid charge off on your credit report unless you somehow either send out a Goodwill letter to Capital One and hope they remove it or just wait for it to eventually fall off in the future.

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Except the account ISN'T showing on OP's reports at the moment at all. That's what they're asking - whether the CA will report AFTER payment.

Although OP, I agree with the above poster as well as @vntrsc about the account not going back to good standing after payment. It'll still be viewed/counted as a CO. Whether or not it would be reported, I don't know; I'm in a similar situation with Chase, but I haven't paid yet. I'm fearful of the same thing.