Settlements are bad

[cjane1]

I read on the internet today that a settlement is just as bad as having an account open and unpaid. How can this be true?

[DI]

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@cjane1 wrote:
I read on the internet today that a settlement is just as bad as having an account open and unpaid. How can this be true?

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A paid settled account is better than an account being open and unpaid.  A settlement stops any potential lawsuits the creditor may file.  Also, it reduces your overall credit balance among all accounts.  

[nothingman02]

I think thats incorrect. An unpaid and open account is better than a settled account. A settled a/c is just as bad as a CO. Also, one could work with an unaid open account to make it a paid/closed accout which is much better than a settled/co/sold etc...

[DI]

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@nothingman02 wrote:
I think thats incorrect. An unpaid and open account is better than a settled account. A settled a/c is just as bad as a CO. Also, one could work with an unaid open account to make it a paid/closed accout which is much better than a settled/co/sold etc...

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It all depends!! I settled an account.  But smart me got the tradelines deleted  with the CA and OC too.   Smart me also won't be receiving a 1099.   It was a repo for a car loan I consigned for.

Message Edited by DI on 12-30-2009 08:28 AM