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Credit Card settlement impact

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Anonymous
Not applicable

Credit Card settlement impact

I was told by BOA that if I pursue their "settlement" approach (to eliminate a high balance), an entry goes on my credit report, for 7 - 10 years, that says something like "payed less than the amount owed".  What type of impact does this have on my credit score/report? 

Message 1 of 4
3 REPLIES 3
0REDSOX7
Valued Contributor

Re: Credit Card settlement impact

Will it impact it?  Absolutely.

 

We cannot tell you what the exact impact will be because we do not know what your credit profile looks like, but, it will drop your score.

 

Also, keep in mind if you do get debt that is forgiven, you will have to pay taxes on the remaining balance that was not settled.

BK Discharge 2/11/14

Currently in the garden.
Message 2 of 4
Anonymous
Not applicable

Re: Credit Card settlement impact

thanks!!!

Message 3 of 4
0REDSOX7
Valued Contributor

Re: Credit Card settlement impact

You're welcome!

BK Discharge 2/11/14

Currently in the garden.
Message 4 of 4
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