Settle or Pay in full

[Anonymous]

While GW is easier to obtain paying in full, as long as you settle and they agree the account is rectified (even if they say settled for less but put it to s $0 balance) you CAN get a GW adjustment. It does not NEED to be PIF, though again it would make it easier. Search the saturation technique and implement that. That would be a good supplementation especially if you are trying to receive a GW adjustment on a settled account. 

[sjt]

---

@Anonymous wrote:

It was my understanding that the negative tradeline needed to be removed to gain points, that just updating to $0 won't increase the score. If you are able to settle then write GW letters to have them remove the negative CO completely, THAT would then allow you to gain points from settling for less, unless I am mistaken. (Which is completely possible, any knowledge I have is from reading LOTS of posts here).

---

Not correct. If there is a balance reporting zeroing it out will take it out of delinquency status and you will gain points. 

[Anonymous]

You are correct. I called and asked. they told me I had to pay it in full to report a 0 balance. So paying in full for me is definitely the best route

[Anonymous]

I was in a similar situation.

Chase card that was a charge off 6600 limit but they were reporting 7800 this put me over 120% utilization.

I settled it for $3k. just yesterday my score jumped 46 points. The UTI is pretty significant.

I too was trying to deal with a mortgage but it was for a refinance and I was told the same thing.. get the balance to zero. the charge off was secondary being 5+years ago.

Not to make lite of $500 but id just pay it... getting that utilization back will be a huge improvement on your score.

hardest part is waiting for everything to report back. but im sure you can get a rapid rescore if time is of any issue.

[Anonymous]

yes! same situation...thanks

[SunriseEarth]

---

@Anonymous wrote:

It was my understanding that the negative tradeline needed to be removed to gain points, that just updating to $0 won't increase the score. If you are able to settle then write GW letters to have them remove the negative CO completely, THAT would then allow you to gain points from settling for less, unless I am mistaken. (Which is completely possible, any knowledge I have is from reading LOTS of posts here).

---

Not true at all, especially with a CO.   COs are bad because they tend to report monthly (keeping the negative "recent") and they affect UTIL.   I settled on my CO with Cap One and saw my scores immediately increase by 20 points.   Once the TL aged off, I went up about another 20.   So it is definitely in OP's best interest to zero out the balance on the CO.  

[Anonymous]

I stand completely corrected! That is why we are here, right, to learn? I was only speaking for my own experience with a Verizon CO. Settled for 50% and it showed paid in full.

[Anonymous]

consider yourself lucky. I do think that some companies will do this for you, unfortunately mine wont. They told me they would not mark a 0 balance unless I paid in full