Capital One Charge-Off?

I have a charge-off from Capital One on my credit report. Account has never gone to a collections agency (none showing on my credit reports from three agencies). The statue of limitations has past as of March 2008. I am thinking of purchasing a home this year. Would it help my credit score to try to settle this debt with Capital One? If I do settle the account, does this now re-age the entry to another seven years? Any other suggestions would be appreciated.

1) Derogatory items stay on your credit file for 7-1/2 years from the date of first deficiency. Nothing restarts the clock. It is very likely that a mortgage company will require you to settle all derogatory items before approval of a mortgage. If you are sure the Statute of Limitations (SOL), the timeframe to bring lawsuit, has passed, you can probably settle for 25%, maybe less. Lump sum gets the best deals and any payment plan has to be short term. Get any settlement agreement in writing and save it along with your payment proof, forever. Do not give them direct access to your bank account. Do not mention that you are considering purchasing a home. They will take a harder line on the settlement amount.

2) If it is not showing up, I wouldn't do anything until you ar ein your home. Why raise a red flag if you do not need to.

3) If the charge off date is March 2008, why not simply dispute it with the credit bureau rather than deal with the hassle. Yes, it is not supposed to re-age if you pay off a debt anymore (depending on where you live... it still does in Canada), but why have to deal with the crap involved trying to get the credit bureau to actually follow the law. Simply dispute it point out that it should have fallen off your report last month.



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