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

[MarineVietVet]

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ptr2593 wrote:

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

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I don't think you can predict how any particular lender would differentiate between the 2 notations. My view was that the lender only cares that the debt is paid and not how it's reported.

Just my opinion of course.

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".

[Anonymous]

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@MarineVietVet wrote:

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@Anonymous wrote:

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

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I don't think you can predict how any particular lender would differentiate between the 2 notations. My view was that the lender only cares that the debt is paid and not how it's reported.

Just my opinion of course.

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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Oh ok, that's my opinion too.  I thought you were trying to say that PIF and Settled In Full were somehow viewed differently.

[guydiver]

My Charge Off reads as "paid", $XXX written off.  Never heard of Charge off, settled in full. It is usually "settled for less than full amount owed" or something similar.  However, as you may already know, as far as scoring, a paid CO carries the same weight as an unpaid CO as far as Fico is concerned.  May help on a manual review though.  Best of luck to you.

[guydiver]

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@kjm79 wrote:

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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. 

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+1, I missed this. 

[tntexans72]

To the original poster. Just give it some time...after 2 yrs from the date the charged off posted on your report, it will become less of a factor in your scoring. If you are on-time on all payments from there on...prime lenders will accept your business after 3-5yrs. The higher your HHI, the sooner it will be IMHO.