Rebuilding Your Credit

[knightlynews]

I just recently settled 3 accounts on my reports. Does anyone know if you receive score increases for settled accts or just those that are paid in full? Also, can settled accts be removed? The companies that I settled with said no, but I don't believe them.! Please help....

[Rain77]

My understanding is FICO scores PIF and settled accounts the same.  If the accounts were factoring into your utilization, you may see a score increase.  Some say they have seen increases, others no movement or a decrease, YMMV. 

As far as PIF and settling - generally one has a better chance of deletion if PIF.  You can always send GW letters, and keep sending until someone says yes.  Also, remember, no one has to delete.  Some will, many won't. 

Congrats on getting debts paid off! 

[rckstrscott]

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knightlynews wrote:
I just recently settled 3 accounts on my reports. Does anyone know if you receive score increases for settled accts or just those that are paid in full? Also, can settled accts be removed? The companies that I settled with said no, but I don't believe them.! Please help....

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Rain was correct, if these were revolving debts, like credit card charge offs, you might see an increase because of how FICO scores revolving debt; but collection debt is scored the same across the boards. Unpaid, settled or paid in full. It all counts the same. Collection account damage hits when an account is placed on your report, and FICO does not reward you for making good on a debt you should have made good before it went south.

Paying in full might give you more options to Gw in the future, but thats even iffy. I had success GWing accounts that were settled as well.

-scott

[Rain77]

Thanks rckstrscott for clarifying - I was definitely thinking of OC not CA. 

[knightlynews]

Thanks! Guess I'll give the GW letters a shot!

[guiness56]

It also depends on who you settled with.  If it was the OC and it was factored into your utilization, then you may see an increase.  If it was a CA, you won't.

[knightlynews]

Damm! It was with the CA. So I guess I need to wait 7 years for it to "fall" off?

[guiness56]

Not, necessarily.  Start sending out GW letters to see if they will remove it.

[vnita06]

I just settled on an old charge off that was using up utilization. I got an 18 point increase.

[knightlynews]

Wow vnita06, that's awesome! Now just to be clear, your writing the GW letters to the dept companies or to the credit bureaus? I've received 3 letters this week from the debt companies stating that the charge offs were paid. So now, do you need a great explanation. to write about so they will remove it, or is it just simply stating your paid off so remove it? Lastly, how do I know if these items are part of my utilization?