@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
I have a Charge Off from a Credit Card with Capital One for $136 on a $200 credit limit.
They are offering me to settle it for $99.58 or pay it in full for $136.78.
What do you recommend doing?
If you have the funds to pay, then PIF; if not, then pay the settlement amount so that you won't end up with a collection on your report.
Does it make a difference?
From my own personal experience, I have been able to get approvals with some good lenders with having settled a couple of collections, while PIF others. That being said, I think that the advice of PIF stems more from the perception of how future lenders will view you if the accounts are settled or PIF. I have been able to get back in with Amex, Cap 1, Barclays, and BoA even having burned a couple of them, but have not had success with Chase, Citi, or Discover (had secured card, but it never graduated). In my case, I feel that the COs that I have had with certain lenders has been more of a factor with them as some companies have long memories when it comes to negative history with them. Either way, whether you settle or PIF, it will allow your scores to start to recover, especially if the CA is updating this negative information monthly.
