Lost 44 points when Cap One updated charge off balance to 0

[Anonymous]

I had 2 accounts sent to Portfolio Recovery from Cap one and both accounts I settled and paid off in July. I noticed on my credit report Capital One had never updated the balance to reflect 0 when they sold the account to PR nor when PR updated their account to reflect it was paid. I did a dispute with Cap One to get them to update the balance to 0 and then bam... my FICO 8 score drops 44 points on Equifax! What the heck!! We are so close to having my mortgage scores reflect all our hard work so we can purchase this fall but I'm so afraid the mortgage scores are going to drop also with this update. 

On the positive side, PR has already deleted their tradelines from my credit reports about 2 weeks after I paid them. My 3B report this month will hopefully show some points gained there but now I'm nervous because of the charge off balance update from 1590 to 0 balance and how that will play into my mortgage scores. 

[Brian_Earl_Spilner]

Unfortunately, when a derogatory like chargeoff or collection updates to zero, it's still updating a derogatory account. This will just be the last one and you should start getting those points back.

[Anonymous]

@Anonymous That charge off was most likely not regularly updating. Therefore you awakened a sleeping giant and it penalized you for the period of delinquency that it just learned the account actually had, rather than the assumption it was operating on previously that it was only delinquent up until the date of the last update, imho.

The algorithm can only calculate how many days you've been delinquent through the date of the last update. Since it had not been updated in a while, it was stuck thinking it was that many days late. Now that it just got marked paid, it realizes that it wasn't paid until now and the delinquency period was actually much longer and it penalizes appropriately. 

It may now also be marked recent. When you get your 3B please let us know if the negative reason codes make any statement about recency, please. 

I'm sorry this happened to you.

[Anonymous]

@Anonymous But you should try the Goodwill technique there’s been a lot of good results from capital one lately. If you can get them to delete it, you would be in there.

[Brian_Earl_Spilner]

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@Anonymous wrote:

@Anonymous But you should try the Goodwill technique there’s been a lot of good results from capital one lately. If you can get them to delete it, you would be in there.

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Who are people emailing for goodwill, the CEO?

[Anonymous]

@Brian_Earl_Spilner The executive offices but I’m not sure exactly who, you’d have to go back and search the threads, but I’ve seen several over the past months.

[Anonymous]

Now that you mention it I remember one of the threads specifically stating they could not give out public email addresses but they gave me the information to google to return it.

[Anonymous]

The account was updating every month as a charge off with at $1590 balance as well as the monthly update from Portfolio Recovery collection account but I've paid them and they have removed the trade line and now that Cap One updated the balance to 0, thats when I lost the points. Its so frustrating! 

[Anonymous]

Does that amount make up a significant amount of your total revolving utilisation?

I got to think about this a little more.

[Anonymous]

Yes, I have an active Discover card with a 5% util balance but both Cap One were showing $1500+ on a $1300 credit limit so now that they are 0 my utilization should be based on the Discover card I have since I don't have anything else in revolving.