Credit Card Center Advertiser Disclosure

New Visitor
Posts: 1
Registered: ‎12-26-2007
0 Kudos

Credit Card Debt - Can I settle

Hi:  I was wondering I have about $20,000 in credit card debt.  No accounts are delinquent.  Can I settle, and if yes will it hurt my credit scores and fico scores.  I have $16000 I can use toward debt.
Senior Contributor
Posts: 3,879
Registered: ‎01-10-2008
0 Kudos

Re: Credit Card Debt - Can I settle

if you have 16k to pay off your debt do so.  this will raise your scores.  then pay the remaining 4k balance asap until paid off.  

negotiating lower payments is only a consideration if you don't have the money to pay and if noted on your cr, as is typical, can negatively impact scores.

DCU EQ 5.0, Citi EQ 08 Bankcard, PenFed EX NG2
EX 08: AFCU, Amex, Chase, PSECU EX 98(?)
TU 08: Barclays, Discover
Senior Contributor
Posts: 3,299
Registered: ‎04-22-2008
0 Kudos

Re: Credit Card Debt - Can I settle

I agree witht he above.  Do not settle.  Even if it does not have a huge impact on your scores, it will have an impact on your ability to get credit with these people later.  Also, settelement is like the step before BK.  If you have 16K in cash and are still on time to all of these accounts, it sounds like you may just need to hold down some spending habits (or you had some serious problem in the past and used credit to get throguh it)  My point being that is sounds like you should be easily able to pay off the 16K that has the highest interest rate, and then use the payments you have been making on the 20K towards the 4 K and get it all PIF in the next few months.  Then, the accounts will remain open and you will have a big positive impact on your scores due to low utilitization. 


The flip side is that if you settle, the accounts will all be closed and it will be difficult to get credit for quite awhile after.  On top of that, your utilization and credit history length will be hurt as well.  You could see a pretty big drop in scores between the settlements, the history, and the util.


Regular Contributor
Posts: 172
Registered: ‎07-02-2008
0 Kudos

Re: Credit Card Debt - Can I settle

if you've got 16K free, I would pay off the debt. Just don't get into debt you can't handle, or run up the cards again...

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.