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New Contributor
knightlynews
Posts: 81
Registered: ‎01-29-2013

Settled accounts vs Paid in full!!!!

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....

Starting Score: 548
Current Score: EX686EQ682,TU???
Goal Score: 760


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Frequent Contributor
Rain77
Posts: 279
Registered: ‎02-24-2012

Re: Settled accounts vs Paid in full!!!!

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! 



Last HP 6/22/14 for a measly $500 CLI - GOH!!!!!


Valued Contributor
rckstrscott
Posts: 2,659
Registered: ‎04-25-2011

Re: Settled accounts vs Paid in full!!!!


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....

 

 

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

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX
Frequent Contributor
Rain77
Posts: 279
Registered: ‎02-24-2012

Re: Settled accounts vs Paid in full!!!!

[ Edited ]

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



Last HP 6/22/14 for a measly $500 CLI - GOH!!!!!


New Contributor
knightlynews
Posts: 81
Registered: ‎01-29-2013

Re: Settled accounts vs Paid in full!!!!

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

Starting Score: 548
Current Score: EX686EQ682,TU???
Goal Score: 760


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Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: Settled accounts vs Paid in full!!!!

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.

New Contributor
knightlynews
Posts: 81
Registered: ‎01-29-2013

Re: Settled accounts vs Paid in full!!!!

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

Starting Score: 548
Current Score: EX686EQ682,TU???
Goal Score: 760


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Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: Settled accounts vs Paid in full!!!!

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

Valued Member
vnita06
Posts: 25
Registered: ‎02-07-2008

Re: Settled accounts vs Paid in full!!!!

I just settled on an old charge off that was using up utilization. I got an 18 point increase.
New Contributor
knightlynews
Posts: 81
Registered: ‎01-29-2013

Re: Settled accounts vs Paid in full!!!!

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?

Starting Score: 548
Current Score: EX686EQ682,TU???
Goal Score: 760


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