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@Madman94044 wrote:
Ive got a past due/ charge off account showing for Cap One, from back in Sept. 2006, balance is currently $1000, orig credit limit $300. They agreed to take $500 to mark as paid-settled w/ zero balance. Would this improve my scores? Other option is to do nothing...
Hello and welcome to the forums.
In most cases paying and/or settling a charge off will not help a score but there is one exception. If the CO is a credit card and both the balance and credit limit are being reported then the account is still being factored into your utilization. In your case the utilization on this account is 300% (1,000/300). That one factor is a score killer.
I would either try to pay this off so that your utilization is lowered and thus your score improve or accept their offer which will also remove this account from utilization. Be aware though that if you pay this off to zero the CO itself will still report.
I would not opt to do nothing. As long as this account continues to report the CL and balance you are being hurt.
Edited to add: A PFD offer is also an option. Have you tried this approach with them?
Hello and welcome to the forums.
In most cases paying and/or settling a charge off will not help a score but there is one exception. If the CO is a credit card and both the balance and credit limit are being reported then the account is still being factored into your utilization. In your case the utilization on this account is 300% (1,000/300). That one factor is a score killer.
I would either try to pay this off so that your utilization is lowered and thus your score improve or accept their offer which will also remove this account from utilization. Be aware though that if you pay this off to zero the CO itself will still report.
I would not opt to do nothing. As long as this account continues to report the CL and balance you are being hurt.
Edited to add: A PFD offer is also an option. Have you tried this approach with them?