Senior Contributor
DaBears
Posts: 3,923
Registered: ‎10-26-2012
Re: Help understanding how settling on a credit card debt will change my Fico score.

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