Settle or Pay Charge Off in Full?

kredit4koral — Thu, 23 Mar 2023 20:33:45 GMT

I have 5 credit cards and 1 loan charge off. I settled one of them and on a payment plan for full payment on another and now I'm wondering if it will make a difference in my credit by not paying them in full? FYI, I am planning on buying a house with my SO in about 2 years. Or as my credit permits.

Indigo (Spring Oaks) - 657$ - settled for 450$

Merrick (NA Recovery) - 923$ - making 4 weekly payments to pay in full

Target - 1,346$

Fingerhut - 1,700$

Upgrade Loan (Spring Oaks) - 3,709$

Re: Settle or Pay Charge Off in Full?

GZG — Thu, 23 Mar 2023 23:31:04 GMT

@kredit4koral wrote:
if it will make a difference in my credit by not paying them in full?

for FICO purposes, no.

a $0 balance is a $0 balance, regardless if it was settled or PIF.

As for if loan underwriters will care, that's a question for them, I would presume not, but you should ask around with them.

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Settle or Pay Charge Off in Full?

Re: Settle or Pay Charge Off in Full?