To pay or not to pay

[Anonymous]

I have a credit card with capital one from 2008, and the last payment was in 2012. I maxed out the credit card during a financial hard time and stopped paying altogether in 2011 and then made a few payments in 2012 but haven't since then. It is listed at 150 percent utilization and is maxed out (plus interest and late fees). This is the only credit card that is showing delinquent on my account totalling 1200 to pay it off in full. I am trying to raise my credit score to try to buy a house in the next year and I am wondering how this would impact my credit if I leave it be, or should I make payments? Anyone have any suggestions? I have a very low credit score and only a certain amount of money to put towards fixing my credit so I want to ensure I am making that money count. Would this be beneficial or should I leave it alone because it wouldn't make much of a difference? Thanks

[Anonymous]

Welcome to the board.  150% maxed out utlization is a huge red flag.  If you have the money, pay it off and begin working on your credit profile to get it mortgage ready.

[Anonymous]

None of my mortgage lenders would have allowed the mortgage to proceed with outstanding unpaid delinquencies.

[Anonymous]

So I should definitely pay this? Also would it be more beneficial for my credit score to make payments monthly to get it paid off or to pay it in full all at once?

[Anonymous]

The sooner it's paid, the sooner it stops updating on the credit report, which means you're able to put some time in between the delinquency and the time you apply for your mortgage.  All of my delinquencies are over a year behind me now, and I have had no problems getting approved for new credit.

[Anonymous]

Ok thanks. I also forgot to mention that this is a closed card...they have closed it about a year or two ago.

[gdale6]

moving thread to RYC for better coverage on subject.

[RobertEG]

Closed only means they have prevented you from accruing additonal new debt on the account.

It has no scoring impact, and can contnue to be updated, and even have new derogs added.

What derogs have already been reported on the account?

An account that old has already passed its mandatory charge-off date.  Have they reported a charge-off, or just monthly delinquencies?

Have you spoken with them about a possible pay for deletion of any reported derogs?