Charge off - Paid in full vs. Settled in full??

[Creditaddict]

What kind of difference would this make on reports?

[Anonymous]

None. 

[MarineVietVet]

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@Creditaddict wrote:

What kind of difference would this make on reports?

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Per FICO scoring, "Settled" is not the same as "Paid in full". In fact, FICO reads all "settled" accounts as charge-offs. So there is a big difference.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[kjm79]

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@MarineVietVet wrote:

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@Creditaddict wrote:

What kind of difference would this make on reports?

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Per FICO scoring, "Settled" is not the same as "Paid in full". In fact, FICO reads all "settled" accounts as charge-offs. So there is a big difference. 

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I think MAYBE OP meant in regards to a charged off account, what would be better paying in full or settled.  In the case of a charge off, whether it's paid in full or settled for a lesser amount (but considerd paid in full), it is still scored as a charge off. A paid charged off is scored the same as an unpaid or settled charge off. 

[MarineVietVet]

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@kjm79 wrote:

I think MAYBE OP meant in regards to a charged off account, what would be better paying in full or settled.  In the case of a charge off, whether it's paid in full or settled for a lesser amount (but considerd paid in full), it is still scored as a charge off. A paid charged off is scored the same as an unpaid or settled charge off. 

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You could be right. I may have slightly misread the post. 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Creditaddict]

Yes "Charge Off Settled In Full"

So for scoring you are saying I really won't see any point increase? However I believe a lot of creditors will not issue cards and such with bad debts (Prime or more Prime banks that is!). bad unpaid debts that is but after paid they will if other factors are good?

Plus then like in the case of Santander that is accumilating costs at a staggering rate this stops, it can't be sold and end up with more collection accounts... yes, no?

[MarineVietVet]

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@Creditaddict wrote:

Yes "Charge Off Settled In Full"

So for scoring you are saying I really won't see any point increase? However I believe a lot of creditors will not issue cards and such with bad debts (Prime or more Prime banks that is!). bad unpaid debts that is but after paid they will if other factors are good?

Plus then like in the case of Santander that is accumilating costs at a staggering rate this stops, it can't be sold and end up with more collection accounts... yes, no?

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For scoring purposes it won't matter but yes a lender would tend to look more favorably on someone who was willing to pay off debt.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Creditaddict]

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@MarineVietVet wrote:

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@Creditaddict wrote:

Yes "Charge Off Settled In Full"

So for scoring you are saying I really won't see any point increase? However I believe a lot of creditors will not issue cards and such with bad debts (Prime or more Prime banks that is!). bad unpaid debts that is but after paid they will if other factors are good?

Plus then like in the case of Santander that is accumilating costs at a staggering rate this stops, it can't be sold and end up with more collection accounts... yes, no?

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For scoring purposes it won't matter but yes a lender would tend to look more favorably on someone who was willing to pay off debt.

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Yeah kind of put sand in my walk the other day when I had a nasty women from HSBC of all banks tell me I didn't deserve more then a $600 CL on my Best Buy MC because I had "RECENT" deliquencies... which kind of made me mad because yes the one is reporting late every month but the account was charged off 3/10 so really I'm quite far out from when the debt actually happened!

[Anonymous]

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@MarineVietVet wrote:

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@Creditaddict wrote:

Yes "Charge Off Settled In Full"

So for scoring you are saying I really won't see any point increase? However I believe a lot of creditors will not issue cards and such with bad debts (Prime or more Prime banks that is!). bad unpaid debts that is but after paid they will if other factors are good?

Plus then like in the case of Santander that is accumilating costs at a staggering rate this stops, it can't be sold and end up with more collection accounts... yes, no?

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For scoring purposes it won't matter but yes a lender would tend to look more favorably on someone who was willing to pay off debt.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

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How would a lender view PIF and settled in full differently?  Both are paid for the same amount.

[Creditaddict]

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@Anonymous wrote:

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@MarineVietVet wrote:

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@Creditaddict wrote:

Yes "Charge Off Settled In Full"

So for scoring you are saying I really won't see any point increase? However I believe a lot of creditors will not issue cards and such with bad debts (Prime or more Prime banks that is!). bad unpaid debts that is but after paid they will if other factors are good?

Plus then like in the case of Santander that is accumilating costs at a staggering rate this stops, it can't be sold and end up with more collection accounts... yes, no?

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For scoring purposes it won't matter but yes a lender would tend to look more favorably on someone who was willing to pay off debt.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

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How would a lender view PIF and settled in full differently?  Both are paid for the same amount.

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PIF would replace the "Charge Off" remark and replace with PIF.

then we have "Charge Off PIF?

and then "Charge Off Settled In Full"

From what I'm reading the ladder 2 don't have a difference in scoring but a $0 balance reporting will help with underwriting etc.

I was trying to get a Settled in Full!!!!