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Effect of settlement vs. paying in full with the OC

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Creditobsessed12
Frequent Contributor

Effect of settlement vs. paying in full with the OC

I have an account that is 120 days late but it has not charged off yet and it's still with the OC.  They are willing to settle for 40% for the balance owed (398). 

 

Being that I already have a 120 day late and shows as deliquent on my credit reports should I just take the settlement?

 

I already have other settlements on my credit reports would another one be super bad?

 

Would my score decrease if I take the settlement or would it increase since the account won't be deliquent anymore?

 

This is for a loan with Wells fargo and they are not willing to allow me to PFD and I have to make a decision ASAP since they are going to charge it off soon. 

 

 

Message Edited by Elizabethd1012 on 02-19-2010 12:50 PM
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fused
Moderator Emeritus

Re: Effect of settlement vs. paying in full with the OC

If Wells Fargo updates this account with the CRAs as "settled", it will be about as damaging as a charge-off. Keep trying for a PFD even if you have to pay more than 40% of what's owed.
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