topic Re: chargeoffs/collections in General Credit Topics

chargeoffs/collections

Anonymous — Mon, 21 May 2007 20:37:33 GMT

If i have chargeoffs/collections; how would payment in full differ from settling the account as far as our credit reports go?

Re: chargeoffs/collections

Anonymous — Mon, 21 May 2007 20:44:18 GMT

From what I understand, a settled for less would have a little more adverse impact than a Paid in Full. But if your score is already tanked than honestly a few more points less doesn't mean alot.

Re: chargeoffs/collections

Anonymous — Mon, 21 May 2007 21:16:54 GMT

@Anonymous wrote:
If i have chargeoffs/collections; how would payment in full differ from settling the account as far as our credit reports go?

FICO doesn't care a bit if you try and make good on a past debt.

With live humans considering you for credit cards and other credit, YMMV. I've read quite a bit of anecdotal evidence that prime credit card issuers and banks do view a paid charge-off a bit more favorably than settled, which in turn is viewed just a little more highly than open. But for the most part, the damage is done. Unless you can get a PFD, I wouldn't waste time or money settling a past debt.

When rebuilding credit, looking toward the future is always more productive than worrying about the (unchangeable) past.

Re: chargeoffs/collections

Tuscani — Mon, 21 May 2007 23:37:48 GMT

The glitch has been fixed... paying a collection should no longer hurt your score.

Re: chargeoffs/collections

Anonymous — Tue, 22 May 2007 00:34:20 GMT

@Tuscani wrote:
The glitch has been fixed... paying a collection should no longer hurt your score.

[wiseguy voice]

Yeah, but it still ain't gonna help nothin' either. You wanna throw money away, at least take it down to the track and bet on the ponies. You might actually get somethin, knowwhattimean?

[/wiseguy voice]

Message Edited by TheNewWorldMan on 05-21-2007 05:34 PM