cancel
Showing results for 
Search instead for 
Did you mean: 

Pay in full vs settlement.

Pay in full vs settlement.

Is there any benefit after trying to PFD by paying a charge off in full or settling. Thanks,

 


Starting Score: 527 12/16/2012
Current Score: 527
Goal Score: 700


Take the myFICO Fitness Challenge
Message 1 of 18
17 REPLIES
Valued Member

Re: Pay in full vs settlement.

I can only speak from my experience. I was offered a settlement on a few cards a few years back. I took the settlement and now it shows settled for less than balance on my reports and one shows charge off. I thought "charge off" was a mistake but Shogun says its just different verbiage. LO told me it didn't look "bad" but paid in full looks better. I am now trying to get these removed. I wish I had PFD and paid in full. Like I said just my thoughts and experience
Message 2 of 18

Re: Pay in full vs settlement.

I'm dealing with Macy's and they won't budge at all for the PFD. Settlement isn't extravagant so I will most likely pay in full.


Starting Score: 527 12/16/2012
Current Score: 527
Goal Score: 700


Take the myFICO Fitness Challenge
Message 3 of 18
Epic Contributor

Re: Pay in full vs settlement.

If you take a settlement, make sure it states it satisfies the debt in full.  Otherwise they can try to collect the rest.

Message 4 of 18

Re: Pay in full vs settlement.

I will make sure of that G.  Thanks so much!


Starting Score: 527 12/16/2012
Current Score: 527
Goal Score: 700


Take the myFICO Fitness Challenge
Message 5 of 18
Moderator Emeritus

Re: Pay in full vs settlement.

Settled and paid in full does not affect your credit scores.  Like his LO said, the PIF looks better to an underwriter that is doing a manual review.   So in otherwords, it has to be looked at by someone in order for it to make a difference.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 6 of 18

Re: Pay in full vs settlement.

So if you can't get it off your report how are you ever to boost your score? I was denied a secured so I'm stuck in what to do. What's the point of paying it off? Will paying off a medical Make it come off or should I try and PFD them? I onoy have two charge offs and a medical collection. My Home Depot was closEd by them on good terms. My longest is a capital one charge off since I was 18.


Starting Score: 527 12/16/2012
Current Score: 527
Goal Score: 700


Take the myFICO Fitness Challenge
Message 7 of 18
Epic Contributor

Re: Pay in full vs settlement.

Paying anything negative does not remove it from your CR.  You can try a PFD.

 

If the COs are with the OC and are reporting a balance, those are figured in your overall utilization.  If you paid them, the amount would no longer be factored and you could see a raise in score.

 

A CO is a major derogatory, so is a collection.  Even though your score takes a hit for them paid or not, on a manual review they look better paid.

 

How old are these accounts you are talking about?

Message 8 of 18

Re: Pay in full vs settlement.

the dates charged off I'm unsure but have been opened since 2009,2011. I would say charged off since 2011,2012.


Starting Score: 527 12/16/2012
Current Score: 527
Goal Score: 700


Take the myFICO Fitness Challenge
Message 9 of 18
Highlighted
Epic Contributor

Re: Pay in full vs settlement.

Message 10 of 18