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I am trying to find out if settling my credit card debt will lower my fico score and if so, what should I expect?
My balance was $2031.00
Settled for $ 500.00
Thanks for any information.
Jason
@Jasona80 wrote:I am trying to find out if settling my credit card debt will lower my fico score and if so, what should I expect?
My balance was $2031.00
Settled for $ 500.00
Thanks for any information.
Jason
Hi Jason and welcome to the forums!!!! Is the settlement with a Collection Agency or the Original Creditor? The only way to see a score bump would've had to result in a PFD. With a settlement all they have to do is update the trade line to Paid settle for less which will not give you a score bump. I would send a GW letter asking for removal.
Dabears
This was with the original creditor. I called them today and worked it out. I asked for them to send me a letter saying they would agree to this.
Was this a charge-off CC? Or was it a current account?
Did paying this off help your CC utilization (meaning the limit was near or less than the balance) or did it hurt utilization (meaning the credit limit was very high)?