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Today, I received an offer for a settlement from Convergent. It's for a Sprint account I had several years ago. They will let me settle for a 65% savings on the total balance. Should I take them up on that? Or should I pay the full amount off over time? Which would be more benifical for my credit score?
Niether would be more or less beneficial to your score.
If your credit score is your primary concern, you can counter-offer with a pay for deletion., thus pursuing removal of thei collection.
However, countering with both settlement for less and credit report deletion is asking for two concessions on their part.
Credit report deletion alone could be a show-stopper.
Your call.
Next best thing to a PFD would be a settlement for less with the additional agreement on their part not to report settled for less to the CRA.
Absent any comment of piad/settled for less, it will then appear in your credit report the same as if you had paid in full.
The relevance of a settled for less comment is upon manual review of your credit report, it informs others that, in the past,you did not pay your full debt.
That means the creditor took a loss in dealing with you, which is never a favorable comment upon any future application for credit.
Thanks for the advice. Does anyone know how likely Convergent is to do a PFD?
If I say I want a PFD or a paid in full. I'd want this in writing. Email or regular mail? I should also state, this is scheduled to fall off of my report in December. Does that raise the chances of me getting either of those two?
Way too many people get hung up on "getting it in writing". If all you can get is a verbal agreement, thats a fully enforceable contract under the law.