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Possible to negotiate lower payoff without affecting Credit Rating?

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I'm working on paying off some debt, and my next focus is our Capitol One card. We have made at least the minimum payments on time, etc. But I just want to be done with one less card.

I called to say I want to close our card and payoff - if they would accept $3100 as 'paid in full' (our current balance is $3900). But - after doing some research I've found that they SAY it will be considered 'paid in full' with an R9 rating...

Would this also be the case if I pay off an account that is NOT defaulted or late? Would I be shooting myself in the foot since it appears they SAY paid in full, but are quick to also slap an R9 rating?

I also asked to get this in WRITING BEFORE I send payment, but the person I spoke to gave me the runaround and told me to call back in 2 hours because their system was down...???

Is the possible savings of getting this balance reduced worth it, or will it be considered R9 or negatively affect my credit rating??

Hi jenevive,

Did they say they would rate it an R9, meaning your account is in "very poor standing"? Double check with them on that one. That's usually only given to those whose accounts are 120+ days past due, and written off as bad debt. If you are going for debt settlement, this is the rating you should expect.

If you don't wish it to negatively effect your credit rating, then you need to pay it off as they have requested. Any settlement is going to come with a black mark. In fact, asking for it may have already affecting your rating with them. They may jack up your interest rate as a result.

It is the best idea, if you have the ability, to pay them off in full and then voluntarily close it, as soon as possible.

Hope this helps,


Sub: #1 posted on Fri, 02/27/2009 - 12:30

Chrys Henderson Chrys Henderson

(Posts: 2532 | Credits: 173.73)

i am in the process of the same thing. i owe chase about $9600. i have never been late. i called yesterday offering a settlement to close the account. if they accept, i have to file a 1099(not likely!) next year, and it will be marked as "paid for less". they said chase won't mark it as "paid as agreed". i have to call them back monday to see if they accept the lump sum one payment offer.

Sub: #2 posted on Fri, 02/27/2009 - 20:26

jon.keefer jon.keefer

(Posts: 25 | Credits: 4.61)

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