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*Need Help!* Should I go for this settlement offer?

Established Member

*Need Help!* Should I go for this settlement offer?

For about 4 years now, I've owed AT&T $494 for breaking my two year contract. That total price includes the $200 early termination fee. The other day, I received a 50% settlement offer where I can end the collection with a payment of $247. Is it worth it? I don't want to waste the money that I really don't have if either A) It's not going to matter when a credit company checks it and still see the collection or B) The collection agency never notifies the Bureaus of my payment and I lose out on $250. Considering I probably can't reach a live person at the number on the settlement, what's my best option? I was originally just going to let it fall off my credit, as I won't need to make any type of "credit check" decisions for a good 5-10 years now.

Message 1 of 4
Senior Contributor

Re: *Need Help!* Should I go for this settlement offer?

I wish I'da known now what I didn't know then.  I settled w/ Afni last year for half.  Now I find out that the OC (qwest) can't even find me in their system so I could have disputed the whole entire thing.  Paying/settling won't help your score.  The only reason I've read to pay old stuff is that if you are applying for a mortgage then it looks better to the lender  than an unpaid. also paying could be a condition of your loan.  But I'm fairly new here and I don't know that much.  Good Luck.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 2 of 4
New Contributor

Re: *Need Help!* Should I go for this settlement offer?

I settled with some CAs before I started working on my credit.  Your score won't increase, but it does look better if it is paid.  You should first write a PFD letter to see if the CA will delete it from your credit reports in exchange for payment.  I didn't do that before, so now my only option is a GW adjustment.

Starting Score: 09/14 EQ 596 TU 587 EX 588
Current Score: 11/14 EQ 670
TU 602 (CK VantageScore 688)
EX 656

Goal Score: 700

Take the myFICO Fitness Challenge
Message 3 of 4
Frequent Contributor

Re: *Need Help!* Should I go for this settlement offer?

I would definitely try going the PFD route first. If they decline the 50% PFD, offer 75% or 100% PFD. If they decline, that's up to you then. It always feels (at least a little) good to pay off a debt you owe, even if there's no reciprocation.

Starting Score: 596 EQ 5-22-11 / 554 TU 5-23-11
Current Score: 615 EQ 08-15-11 / 631 TU 09-27-11
Goal Score: 700+

Take the FICO Fitness Challenge
Message 4 of 4