CO account. To pay or not to pay?

[Anonymous]

I have asked this in another forum but ill ask here also.

I have a CO with Cap 1 that is over six years old. I don't ant to wait for it to fall off as Id like to get a mortgage soon. I contacted their executive office & someone called to ask a few questions. They said they would call me Mon or Tues. I offered a pfd but he said he had to talk to managers and then let me know. My question mostly concerns my scores. If they did do a pfd I know my scores would rise. If they refuse pfd what would be the next best thing to ask for in terms of raising my score or at least not losing points? I liked to be prepared with a request if they don't agree to pfd.

Thanks!

[Revelate]

What's the current status?   I assume you still owe money on it but what is the date of last update / last activity on the credit report?

If it's effectively current, pay it and get the line in the sand drawn so it starts aging.  If it hasn't updated in a good long while, I'd leave it alone personally unless the mortgage LO told me different.

IF you can get an agreement where they'll whack the tradeline in exchange for payment absolutely take it of course.

[Kutuzov]

The delete part is 1 month before, after 7 years of last payment. So if your last payment was May 1st 2010, it will drop on April 1st 2017. PFI is hard no a days cause they make it iligal, but whatever you do, Do it in written, if it ain't in written it never happened.

[Anonymous]

Cap 1 and it updates minthly as CO. Dofd 12/09. Ive already tried ee with cras and its a no go. Im afrsid to pay as I cant have my score drop because Im applying for mortgage preapproval this month.

[Kutuzov]

So it will be gone by 1st November 2016, some Bureaus might remove it earlier.

You can dispute it and they should update with only 1 co in May 2010, all the rest should be gone, that's what happened when I disputed old co's back in the day. YMMD.

[Revelate]

Don't dispute it when talking mortgage, that's going to be an automatic delay you don't want.

If this is the only issue on your credit report, why aren't you waiting till you can get it off in another 4-8 months on various bureaus?  Or are you planning to just buy now and then refinance in six months or a year or whatever?

[RobertEG]

If it is a charge-off with a DoFD of 12/2009, then the credit report exclusion date would be no later than 6/2017, with likely standard excluion by the CRA at 7 years, or 12/2016.

Date of any last payment is irrelevant.

Since they are already updating monthly, they are getting the level of delinquency updated in your scoring, so making PFD offers will not provoke any reporting on their part that will do additional score damage.

I presume that SOL has expired.

Going beyond the simple issue of scores, the expiration of credit report exclusion will not result in the discharge of the delinquent debt.

Thus, exclusion from your credit report will not result in removal of any issues upon application for a mortgage.

Credit report exclusion prevents creditors from becoming aware by means of a simple pull of your credit report, but they have other ways of finding out about delinquent debt.

The lendor is likely to ask, as part of the application process, for the disclosure of any unpaid, delinquent debt.

Is the intent not to pay the debt, and yet preclude others from becoming aware of the debt?

[Anonymous]

SOL has expired. I plan on paying it which is why I contacted Cap1. I'm just not sure when they contact me again if they'll do a PFD. Can I ask for them to take all the updates off for the last six years? And if they do that how does that help my credit score ?

[RobertEG]

When do you actually plan to apply for a mortgage?

I ask because if you can wait until after the CO and derogs become excluded, you wont need a PFD at all.

Once the debt is paid, it will no longer be a required disclosure when you apply for a mortgage.

If they wont do a PFD, then  you could just pay and wait for the credit report exclusion to remove the derogs from view and scoring.

[Anonymous]

Im applying in May. My lease is up in July & really dont want to renew it.

So aside from them doing a pfd there really is nothing else that I could ask for? Can they remove all the CO updates from the last 6 years? Would that help at all?