Will my settled Capital One debt show as forgiven on my credit report?

J

JesseOtterSideshow

New Member
Okay, so I had a Capital One credit card that closed… I made payments on there and got the balance down to $200. They gave me a settlement to pay $80 and forgive?the other $120—I settled with them.

So, on my credit report it updated and left the $120 that they said would be forgiven… or is it going to update again as paid the lesser amount? And is it a good thing to pay closed accounts?
 
Man, I feel the same way. Why would they call it a settlement if it's still dragging down my credit report? I really need to get this thing removed.
 
Use a 'pay for delete' agreement. Always get it in writing. Include a Non Disclosure Agreement. This prevents the creditor from discussing your account with others.

They cannot update your credit reports. Then, dispute the item. The credit reporting agencies will be unable to verify it. The item will be removed.
 
You need a letter from them spelling out what they'll do if you pay. That's the contract they have to follow. That's the proof you show the credit bureaus to get them to fix the error on your report if the creditor doesn't report it right, as promised in that agreement.
 
Okay, so I've talked about this a bunch before. We usually don't pay off closed accounts, unless it's one of those specific situations like when you need it for a loan approval or a big buy, or if you really want to stay on good terms with the bank, or you're dealing with a lawsuit and need to settle. But honestly, all those options come with risks you should seriously think about first.

Now, if you do settle a closed account, the lende should update the balance to $0 and mark it as settled or paid for less than full balance. If it's still showing that $120, it's either just a lag in reporting or it's flat out wrong and under the FCRA, you can dispute that. Just keep in mind: paying or settling a closed account won't boost your credit score, since stuff like your payment history and whether an account is open or closed matters way more than the balance. Actually, if it's not done right, it can sometimes even mess up the account's age on your report. The real game plan isn't just about paying it's about making sure it's reported correctly or getting it taken off completely. That's where we step in to help clients use the law to clean things up the right way.
 
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