Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Report
Profile Image

Question By
champ989

3 Contributions
1 Person Helped
Closed as derogatory - Anything I can do to raise credit score?
Looking to buy a house, FICO score is 621 and Creidt Karma score is 690 (But it's for some reason missing the closed as derogatory)

I called the credit card company (Capital one) they said they closed the account as derogatory back in 2013 and they were no longer accepting payments for it... I was told I could 'donate' money to pay off the debt but it would not come off my credit report, it would show as $0 balance instead of $1000 something... Is that even worth it? Is there another way I could go about getting this removed from my credit report?

Also is a 620 FICO score good enough for a first time home buyer with the 3.5% down FHA loan..

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
5038 Contributions
1131 People Helped

As far as getting Capital One to remove something, it probably will not happen. As far as paying off the balance owed, it would help. It would reduce credit utilization and look better under manual review of your credit reports. Keep in mind though, that if the account has not updated for a while, whatever changes you make to it will cause it to update and may cause some harm because the negative account will look fresh, but the reduction of credit utilization may cancel that out. Regardless, paying it off would help in the long run. You should be concerned that the account will go to a collection company and a collection will pop up on your credit reports for the debt. My advice is to pay it if you can get Capital One to accept the payment. If they will not accept the payment then you should find out what collection company that they sold the debt to and contact and pay them before they put it on your reports. Make sure the collection company agrees to not put the account on your reports in exchange for you paying the account in full. Keep in mind a collection company will keep adding money to the debt as well. I am not sure if your current score will be satisfactory or not, more than scores go into lender's decisions. One of the best things that you can do at this point is to read, read and read everything that you can about credit and all that comes along with it.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.