Received an "Opportunity To Settle"

[Anonymous]

Hi Everyone,

I received an offer in the mail today from RJM Acquisitions, the CA that holds one of my debts. They are offerring to settle my debt for only 30% of what is owed. before I received this, I was actually working out a plan in my budget to be able to PIF. If I take the offer from RJM, will it help my fico at all, or will showing that I settled for a lesser amount hurt my fico? Would PIF help my fico more?

[llecs]

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@Anonymous wrote:

Hi Everyone,

I received an offer in the mail today from RJM Acquisitions, the CA that holds one of my debts. They are offerring to settle my debt for only 30% of what is owed. before I received this, I was actually working out a plan in my budget to be able to PIF. If I take the offer from RJM, will it help my fico at all, or will showing that I settled for a lesser amount hurt my fico? Would PIF help my fico more?

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Whether you settle or PIF, your FICO will not change. In other words, if you owe $0 or $10,000, the damage is the same. FICO doesn't score on the CA's balance, but on whether or not it reports.

If they offered a settlement, mail them a PFD letter and include that amount into the PFD. RJM is very accepting of PFDs, and if they they accept this in writing, then pay it and they'll delete and that can very possibly increase your scores (depends on your overall credit).

[Anonymous]

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@llecs wrote:

Whether you settle or PIF, your FICO will not change. In other words, if you owe $0 or $10,000, the damage is the same. FICO doesn't score on the CA's balance, but on whether or not it reports.

If they offered a settlement, mail them a PFD letter and include that amount into the PFD. RJM is very accepting of PFDs, and if they they accept this in writing, then pay it and they'll delete and that can very possibly increase your scores (depends on your overall credit).

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Thanks llecs,

I already wrote, printed and sealed the envelope with the PFD letter in it! It's going out in tomorrow's mail!!

[pmarti8]

It won't help your score immediately but if it is a substantial discount and you are worried about being sued I would settle the account.  But always try a PFD letter first.  Edited

Good luck!

Advocating or suggesting the disputing of accurate info violates our Credit Repair Discussion Guidelines, Terms of Service, and User Guidelines that prohibit the promotion of certain types of credit repair. - llecs, myFICO moderator