topic Re: Credit score after debt settlement in General Credit Topics

Credit score after debt settlement

Anonymous — Sat, 02 Feb 2008 21:23:18 GMT

I've paid off two major debts within the past six months through debt consolidation. I'm about to pay $13,000 off, which was offered as a settlement (down from $20,000) for another account and I'm wondering how this is going to affect my credit score. This particular account is in the hands of a law office.

Re: Credit score after debt settlement

haulingthescoreup — Sat, 02 Feb 2008 21:53:51 GMT

If you haven't already, make sure that the payment is a PFD, payment for deletion. In other words, they agree to remove ALL derogatory information from the 3 main CRA's (Equifax, TransUnion, and Experian), plus any other to whom they may report (Innovis, ChoicePlus, and on and on.) You want to get this in writing, signed by someone at the collections agency and/or law firm who has the authority to do this. If the account reports at all, it should show as paid in full.

It should be no skin off their noses to do this, but they like to get snotty about this, especially if they think that they can get more money out of you. But it is VERY important to get the negative information off of your credit reports.

Re: Credit score after debt settlement

Anonymous — Sun, 03 Feb 2008 04:34:57 GMT

Thanks for the info. I have until 2/15 to accept the offer, which I think I will. I never knew that you could do that. I appreciate the advice. When I speak with them, I'll make sure to ask.