@Anonymous wrote:
I sent a PFD to EOS CA offering to pay approximately 40% of the total debt owed. They never responded, but sent a letter offering a settlement for slightly more than the amount I offered. I don't mind paying the higher amount, but I really want this off of my credit.
I want to send them a new PFD with the amount they suggested, but I don't want them to turn around and pull the settlement offer all together making me have to pay in full.
My goal is to raise my score and qualify for a mortgage. Would I be better off to just accept the settlement and let it stay on my credit as "settled" or however they would report it? Help!
Wait 30-45 days following the sent PFD before considering a new round of PFDs.
I would consider the option to offer more, or at least equal to their offer.
IMO, time was more important than $$$$. I personally would rather have it off sooner rather than later so I always offered 100% (assuming it were legit or close to that amount) in my PFDs. I was always afraid that if I started at 40%, then I'd have to offer 50% next time, then 60%, then 70% and so on and lose composure in the process. And if each round of PFDs took a month, then that's added time it remained on the report, assuming they accepted PFDs to begin with. If figured that if they said no to 100%, then at least I can keep bugging them at 100% vs. wondering if they'll accept more. Now if the settlement saved me thousands, then my answer might be different, but everyone's financial threshold varies. It's mental ping pong by doing a cost-benefit analysis to see if it's worth saving $$$ in exchange for a longer reporting.
Per FICO scoring, a settlement comment on a CA won't hurt any. Whether you owe $0 ot $10k, the damage is equal, so no score change if paid. In the eyes of a lender, they may look at a paid CA a bit more favorably and most lenders will require you to pay it before being approved for a mortgage.
Starting FICO Score: 10/1/12--EQ 512 | TU 492 | EX 524