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Can I settle with NFCU now then pay the remaining balance in the future to get back with them

icloud987
New Contributor

Can I settle with NFCU now then pay the remaining balance in the future to get back with them

Hi,
I owe 20000 to NFCU. They have been sending me offers to settle . I am thinking about set up some payment plans and settle with them for now ,because I can't afford to pay back in full . It has been charged off.
But if I do that ,can I offer them the remaining balance in the future once I can afford to pay those remaining balances,just so I can get back with them ? I heard without paying back every penny ,I wont be able to get back with them. I hope I can use their home loan for a home in the future .
In your experience ,how soon can you get back with NFCU ,get a home loan , or credit card from them after you pay back all you owe ?
Thanks.

Message 1 of 17
16 REPLIES 16
KangiCosmos
Valued Member

Re: Can I settle with NFCU now then pay the remaining balance in the future to get back with them


@icloud987 wrote:

Hi,
I owe 20000 to NFCU. They have been sending me offers to settle . I am thinking about set up some payment plans and settle with them for now ,because I can't afford to pay back in full . It has been charged off.
But if I do that ,can I offer them the remaining balance in the future once I can afford to pay those remaining balances,just so I can get back with them ? I heard without paying back every penny ,I wont be able to get back with them. I hope I can use their home loan for a home in the future .
In your experience ,how soon can you get back with NFCU ,get a home loan , or credit card from them after you pay back all you owe ?
Thanks.


Yes you can. You can settle so it stops reporting every month as a late. Then later you can call to pay more towards what you owed them. You don't have to pay the full amount later at pnce. You can just keep calling and sending money with out an agreement.

Once you have paid the total off you can then get back into their good graces.


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Message 2 of 17
Brian_Earl_Spilner
Community Leader
Mega Contributor

Re: Can I settle with NFCU now then pay the remaining balance in the future to get back with them

It's actually a smart idea since they're known to let you restart your relationship almost immediately after being made whole. Settle now so the charge off is taken care of. If it's not in regards to a checking or savings account issue, you can reopen both of those immediately after. You won't be eligible for credit products until they're paid in full, but once you do, the system merely needs to update that info and you can immediately apply for credit again.




Message 3 of 17
icloud987
New Contributor

Re: Can I settle with NFCU now then pay the remaining balance in the future to get back with them

Thanks for your advice.I just called NFCU ,They told me after the settlement , my balance wouldnt be updated to 0 ,it will be updated to the remaining balance of what I owe after the settlement , they will just stop collecting . I thought after settlement credit balance needs to be updated to 0 , so I can bring down the utilization and rebuild credit .
Does all settlement work like this or just navy federal does this?

I have intention to pay back the remaining balance in the future once I can ,just unsure about this settlement outcome.

Message 4 of 17
OmarGB9
Community Leader
Super Contributor

Re: Can I settle with NFCU now then pay the remaining balance in the future to get back with them


@icloud987 wrote:

Thanks for your advice.I just called NFCU ,They told me after the settlement , my balance wouldnt be updated to 0 ,it will be updated to the remaining balance of what I owe after the settlement , they will just stop collecting . I thought after settlement credit balance needs to be updated to 0 , so I can bring down the utilization and rebuild credit .
Does all settlement work like this or just navy federal does this?

I have intention to pay back the remaining balance in the future once I can ,just unsure about this settlement outcome.


Seems like the rep left out a step. Usually all creditors do that, wherein they update the balance first with the settlement amount deducted from the outstanding balance, and then in a subsequent update, change the balance to zero. So it usually takes two full billing cycles (60 days usually, sometimes more, sometimes less).


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Message 5 of 17
icloud987
New Contributor

Re: Can I settle with NFCU now then pay the remaining balance in the future to get back with them

The rep clearly told me , "no the balance won't be reported as 0 " . She said the balance would be the difference of what I owe minus the settlement. It will always be that way until I pay back in full. 

Now I wonder if this rep doesn't know what she is talking about, or Navy Federal indeed works like that ? I haven't gave them the settlement yet because I am worried about this. 

Message 6 of 17
icloud987
New Contributor

Navy Federal Won't update balance to 0 after Settlement?

Good evening, can anyone who has settled with NFCU before sharing your valuable experience, please?

I was trying to settle with them today, and the rep from navy federal in-house collection told me after I settle, the balance won't be 0, it will keep be reported as the difference between the full amount minus my settlement. The settlement will only stop collection activity. The offer she sent me doesn't mention about they will update the balance to 0 after settlement. 

 

Is this typical with NFCU settlement? Or I need try a different rep and ask the balance to be updated to 0 after settlement?

Thanks a lot.

 

 

 

Message 7 of 17
Remedios
Moderator

Re: Navy Federal Won't update balance to 0 after Settlement?

@icloud987  I've merged your threads since you already asked here.

Please avoid cross-posting, it creates confusion. 

Message 8 of 17
icloud987
New Contributor

Re: Navy Federal Won't update balance to 0 after Settlement?

Sorry . I was trying to get some feedback about the balance issue . So I thought a different title better explains the new questions would be better . Thank you for your help.

Message 9 of 17
Remedios
Moderator

Re: Navy Federal Won't update balance to 0 after Settlement?


@icloud987 wrote:

Sorry . I was trying to get some feedback about the balance issue . So I thought a different title better explains the new questions would be better . Thank you for your help.


When you settle, balance must reflect $0.00

First update shows payment, but remaining balance stays. Second update should reflect $0.00 balance. 

Sometimes it happens in one step, but this is more common scenario. 

If NFCU reported a balance after accepting a statement, reporting would be incorrect. 

There will be annotation "paid, settled for less" which will differentiate settled from paid in full account 

Message 10 of 17
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