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Collections account ageing question: How FICO determines age of collections account?


ADSOFT
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I have two collections on my report that are over two years old and I'm really starting to think that they are holding my score back.

My credit took a big hit in October of 2006 and it started bouncing back but has not moved since April of 2007.

I'm starting to think that the problem is related to CAP1 continually updating a $300 credit card that I let go into charge-off status about 3 yrs ago. The account was charged off 3 (approx 10/2004) years ago but was updated this month (10/2007).

My question is that if I settle with these guys and pay it off, hence getting a PAID CHARGE OFF on my report will my score go down further since the account willl be current?

I'm starting to think that this account is not aging, as I'm led to believe by reading this thred, since on my credit report the credit card is still showing as an open account and my past due balance is always equal to this credit card (and the $15+ interest they charge every month on the past due balance) and the other charge-off from 2002.

I called CAP1 and they are will to settle the account for $250. I'm seriously thinkg of settling with these guys but I'm afraid that my score will take a big hit.

I guess my question is how is FICO aging this account, is it an account that is 3 yrs old or 1 month old?

I'm really starting to think it is one month old since my score hasn't moved since 4/07.

Can someone please clear up at to the age of this 3 year old charge off this is getting updated every month and showing as an open account on my report?

TIA

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Just curious...how much is your CRAP 1 balance?...they will continue to poison your scores until you settle.

What is hurting your scores more is CRAP 1 updating TL each and every month as currently past due. Dont worry whether it says settled for less than full balance (they will NOT budge on the listing) much better than late as of 10/2007 and updated. They also kill your util% as that 250 CL is showing a much larger BAL--way over the limit.

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Just curious...how much is your CRAP 1 balance?...they will continue to poison your scores until you settle.

What is hurting your scores more is CRAP 1 updating TL each and every month as currently past due. Dont worry whether it says settled for less than full balance (they will NOT budge on the listing) much better than late as of 10/2007 and updated. They also kill your util% as that 250 CL is showing a much larger BAL--way over the limit.

Well the credit card originally was for a limit of $300, they are saying that I owe them $1041!

And they have it listed as a CHARGEOFF but the payment status is DELEQ 180.

How can an account be Charged-Off and still be reported DELEQ 180. It is also shows a bunch of L's (i.e, LLLLLLLLLLLLLLL654321CCCCC).

I thought that once an account is charged off by the OC they couldn't add anymore charges.?

Should I just settle?

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Let me give u an example..

I have two COs with CRAP 1 --971 and 1200 (past SoL :lol:)

Well on the 971--they offered $550 and I said--sure if u delete..no deal.

I offered $300 no response from them yet...so the game continues..

Yes I would take the $300.00 offer and run...THEN bug the hell out of them trying to get it deleted...

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I have a similar situation with Cap1, haven't tried to contact them yet, but the 300 card is up to 1200. It is SOL.

So do I understand you to say that you contact them seeking a settlement then they update as settled for less and that will be better than them reporting the CO each month??

If that is the case, it is something I will certainly consider. that Ugly account is hurting me, and it still has a few years to go.

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And they have it listed as a CHARGEOFF but the payment status is DELEQ 180.

How can an account be Charged-Off and still be reported DELEQ 180. It is also shows a bunch of L's (i.e, LLLLLLLLLLLLLLL654321CCCCC).

I thought that once an account is charged off by the OC they couldn't add anymore charges.?

Sounds like a deliberate poisoning attempt to me. A charged off account is closed. What does the report say the status of the account is? If it's open and late every month they may be in violation.

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Cap one reports monthly on all accounts. As a national creditor, they will not do a PFD.

You are correct that FICO scores are hugely affected by recently updated derogatory accounts. So, there is no benefit (to your score) in settling or paying. You're screwed either way. I suggest you gather more information before you make a decision.

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Cap one reports monthly on all accounts. As a national creditor, they will not do a PFD.

You are correct that FICO scores are hugely affected by recently updated derogatory accounts. So, there is no benefit (to your score) in settling or paying. You're screwed either way. I suggest you gather more information before you make a decision.

Do you have any links that can help/Inform me?

TIA

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