Question on Settlement

[Anonymous]

I just settled on one of my credit cards that went to collections and it has updated, but ti says my balance is the remainder of what I didn't pay, is that what it is supposed to say? I am happy to report though that my score went up 23 points just for that card updating.

[Heavanly1]

Did you receive in writing from the cc company that the remainder of the debt would be forgiven? If so, then that tradeline should read "payment made after charge-off/setlled for less than full amount" and list a zero balance.

The way it reads now means that they still consider you to owe the additional balance. The balance and credit limit will continue to factor into your utilization calculations as well.

The last thing you want is for them to sell the remaining balance to a collection agency.

[Anonymous]

I received a settlement offer in the mail that said if I paid $2,073 they would accept it as settlement in full and would consider the account settled in full. It is a collection company. It says on my report that my balance is $3,109 so they subtracted the $2073, but it also has not been a month yet so I don't know if they just haven't fully updated yet. I've only paid off one other collections and because the oc owned it they took it off as soon as I paid and disputed it. I just wanted to make sure that it wasn't a mistake or that I got screwed over.

[Heavanly1]

I think you're okay. Some creditors require a 21-30 day "waiting period" before they report the account as settled in full to the credit bureaus. They simply want to ensure that your payment clears and isn't returned by the bank. Wait until next month to  see if the tradeline updates to a $0 balance.

[Anonymous]

ok thank you