Valued Member
Posts: 48
Registered: ‎06-02-2007

Settle for less vs paid in full!

I have a judgment that was paid in full as far as I know since it was paid through the title company when we sold a house last August.  I just notice the notes in the credit reports said Settle for less amount and have a balance of $0.  It was paid in full.  I am trying to find out with the OC and CA but they are not helping at all.  The question is...If they change settle for paid in full, if that will make a difference in the scores?
Frequent Contributor
Posts: 371
Registered: ‎04-19-2007

Re: Settle for less vs paid in full!

I don't think so but maybe someone more knowledgeable will chime in. E!
Moderator Emeritus
Posts: 6,182
Registered: ‎03-29-2007

Re: Settle for less vs paid in full!

AFAIK, FICO doesn't factor the comment. A charge off is still a charge off. Your goal should be getting it removed.
With that said, a manual reviewer would certainly interpret "Settled for less than full balance" as a negative.
Posts: 210
Registered: ‎04-28-2007

Re: Settle for less vs paid in full!

[ Edited ]

Determine your credit goals and decide if the settlement being construed as a negative even matters. I've heard the "manual underwriting" case made for not doing settlements, but I've yet to see it have any negative impact on my own acquisition of credit. I've settled a few big accounts for under 50%, saving me as much as $3500 on one account. While it is true I'd rather have the account notated as "paid in full" rather than "settled for less than full balance", I have to question whether it has really affected me enough to justify spending thousands of dollars more. I just bought a house at prime and have obtained several prime credit cards all within the last 6 months, with a few settlements on record that are less than 2 years old. So, there you go. Certainly not a recommendation, just sharing my experience. :smileyhappy:

Message Edited by devhip on 06-21-2007 07:36 AM
Posts: 210
Registered: ‎04-28-2007

Re: Settle for less vs paid in full!

In follow-up....after reading your post again I realize in your case much of what I commented on doesn't matter. You didn't settle, you paid the thing. So Tuscani is absolutely correct. It's inaccurate and should be disputed.

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