Advice needed: Credit report says 7 mnths from removing adverse accnt. Should I Wait?

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moemonney
 
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Advice needed: Credit report says 7 mnths from removing adverse accnt. Should I Wait?

Postby moemonney » Tue Apr 21, 2015 1:15 pm

Hello,

I just moved back to the US after living abroad for the past 12 years. At some point I had a Capital one card with a very low limit of 300 Dollars. Its one of only 2 things on my credit report. the other is an Amex card I had for 8 months that was always payed in full on time. The Captal one card was never payed, I had forgoten I even aquired it years ago. Either way it apears they have been stating C/O on every month and the current amount owed is around 1,500 and rises every month.

I want to establish good credit ASAP. The Report says that the adverse account (capital one card) is estimated to be removed from my report in Nov of 2015. Should I pay it off or should I wait out the remaining 7 months? What would be the best option for me to begin to establish good credit?

Thanks!


moemonney
 
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Joined: Tue Apr 21, 2015 1:01 pm
Location: San Francisco

Postby moemonney » Wed Apr 22, 2015 3:11 am

Any advice at all???

Thanks again!

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Vattené
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Postby Vattené » Tue Apr 28, 2015 4:28 pm

Could you easily pay it off if you wanted to? Is there any credit you would like to obtain before it is scheduled to fall off?

Before we met my wife got into some credit troubles when she was very young. We just waited out a lot of her baddies, BUT I was able to get any credit products we needed and we were also in college so we didn't have a lot of funds to pay off old debt. It was worth it to us to just wait it out. It took a long time, but everything finally fell off early this year.

My biggest worry if you paid it off would be whomever holds the debt "re-aging" it. It would show as paid off, which is better than unpaid, but may potentially continue to report 7 years from when you paid it off and by trying to do the right thing you end up giving yourself a brand new baddie to start waiting on again. Not saying this would or should happen, just that it would be my concern if I were in your shoes. If it has been charged off to some shady collection agency, they are notorious for that sort of thing. Maybe others could chime in about this likelihood.

I think your best bet is just waiting it out. From my wife's experience, the CRA's dates of when derogs fall off is accurate, so worst-case scenario if you do nothing is wait 7 months. If you pay it, there is a risk of a much worse worst-case scenario. 7 months is a pretty short time in the credit world. May seem screwed up, but those are the incentives the system has set into place for us.
-Vattené
FICO-8:
EX - 827 (4/17) | TU - 812 (4/17)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

Nixon
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Re: Advice needed: Credit report says 7 mnths from removing adverse accnt. Should I Wait?

Postby Nixon » Tue Apr 28, 2015 9:47 pm

Call the CRA's and ask if they will do early deletion.
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