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champ989

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Account closed as bad debt (would paying it improve credit score?)
I owe $1,000ish on a Capital One credit card and when I finally tried to pay it they said the account was "closed as bad debt" and they were no longer accepting payments for it. I was told I could "donate" my money towards the bill and it would show up as 0 instead of $1,000 but it would not come off my credit report.

Would paying it increase my credit score? I'd rather not throw away $1,000 but if there's a decent change it will improve my score I think it's worth it..

Would banks loan to someone with a bad debt/outstanding balance on someones credit report?

P.s. I'm trying to get a mortgage, I only have a 621 FICO score and a 690 Credit Karma score. My goal is a 640 FICO..

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It will not improve your credit scores, BUT it will help prevent them from becoming worse. If you don't pay it, a collection account will most likely pop up on your reports for it which will cause further damage to your credit. In addition you should know that most mortgage lenders will not issue loans if you have outstanding debt in negative status. I would pay it and make sure that you keep receipt of the payment, include the account number on the payment, etc. If a collection has already appeared for the debt, attempt to get a "pay for delete agreement" with the collection company. Capital One does not do "pay for delete" though.

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