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I have an item that went into collections in the amount o...

josie
Regular Contributor

I have an item that went into collections in the amount o...

I have an item that went into collections in the amount of 1681 they are offering me a settlement in the amount of 840. My question is it going to hurt me if my credit report shows that i accepted this settlement. I am in the process of fixing my credit report this item has been on my credit report from aug 2006. It is the last collection account that I have to pay off. Or should I just  come up with the money and pay the whole amount off which would not be until Aug. 2007
Started over because life happens.
I did it again even better this time. My highest score last time was 680

Starting Score: 513 Ex 520 Eq 534 Tu
Current Score: 703 Ex 702 Eq 701 Tu
Goal Score: 740


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Message 1 of 57
56 REPLIES 56
Marie
New Member

Settlement agreement should require creditor to report account as unverifiable

The research I have been doing indicates that you should ensure that the settlement agreement includes that the creditor will report the item as unverifiable.  Be sure that is in writing in the settlement agreement.  This might require you to dispute the item with the credit bureaus to get it off your report, but hopefully the creditor will do this on their own.
Message 2 of 57
josie
Regular Contributor

According to the collections office they will report it a...

According to the collections office they will report it as settled would this hurt me when i apply for a loan looking to get a car loan at the end of  the year or early next year.
 
Started over because life happens.
I did it again even better this time. My highest score last time was 680

Starting Score: 513 Ex 520 Eq 534 Tu
Current Score: 703 Ex 702 Eq 701 Tu
Goal Score: 740


Take the myFICO Fitness Challenge



Message 3 of 57
josie
Regular Contributor

I called eq and they said it would be better for me to pa...

I called eq and they said it would be better for me to pay the collection in full because it would then show paid in full in stead of settled which creditors will most likely to think twice about issuing me credit.
Started over because life happens.
I did it again even better this time. My highest score last time was 680

Starting Score: 513 Ex 520 Eq 534 Tu
Current Score: 703 Ex 702 Eq 701 Tu
Goal Score: 740


Take the myFICO Fitness Challenge



Message 4 of 57
scorebig
New Visitor

Negative information

Josie,
 
Any negative information (especially) recent negative information will hurt your credit score. I would take the settlement for less obviously but the fact is if it's a collection it will impact your score. As far as paying it back, make sure you GET IT IN WRITING -insist that they agree to delete the item when it is paid in full. Your part will be to make sure you can make the payments- nothing looks worse than agreeing to pay and then defaulting again.
 
If you decide not to pay at all, only time will lessen the negative effects.
Message 5 of 57
josie
Regular Contributor

They say all they will do is report as paid in full that...

They say all they will do is report as paid in full that is if i pay the whole amount if i pay the settlement they will report it as settled.
Another question this is from a rental  property that is from 2002 but went on my credit report  in  aug 2006 if i just let it go even if i contacted the collection company when will this come off my credit report  if i leave it alone starting from now will it be as of 2002 when i left the state or will it be as of aug 2006.
 
Need  all the  help i can with this really need to  know what is best.
 
If i should  pay this this off in full should i use my credit card which would then use 45% utalization and would be able to pay 500 a month to pay it down or should i just wait until aug to pay it off


Message Edited by josie on 04-06-2007 09:19 AM

Message Edited by josie on 04-06-2007 10:01 AM
Started over because life happens.
I did it again even better this time. My highest score last time was 680

Starting Score: 513 Ex 520 Eq 534 Tu
Current Score: 703 Ex 702 Eq 701 Tu
Goal Score: 740


Take the myFICO Fitness Challenge



Message 6 of 57
missaishat
New Visitor

get a written statement!!

make sure you receive in writing a statement from them saying that they will REMOVE the item from all 3 bureaus once you pay it.
Message 7 of 57
josie
Regular Contributor

The company said if i pay the balance in full they can no...

The company said if i pay the balance in full they can not have it remove my my credit report. All thry can do is report it as paid in full.
 
Started over because life happens.
I did it again even better this time. My highest score last time was 680

Starting Score: 513 Ex 520 Eq 534 Tu
Current Score: 703 Ex 702 Eq 701 Tu
Goal Score: 740


Take the myFICO Fitness Challenge



Message 8 of 57
yoreljm
New Contributor

I think different collectors have different rules. When I...



@josie wrote:
The company said if i pay the balance in full they can not have it remove my my credit report. All thry can do is report it as paid in full.



I think different collectors have different rules. When I settled my chargeoff for less than half, the said they would report it as "paid in full". Note that the collectors do not have your best interest at heart. They ARE going to try to get the full ammount! My charge off when to many different collectors until i found one to work with me.
Message 9 of 57
josie
Regular Contributor

That i have figured out they really didn't want to work w...

That i have figured out they really didn't want to work with me with any thing i asked them it was like everything they can not do. I think i am just going to accept their settlement and see what happens even if they report it as settled. It would be 840 i can keep it the bank to add to  my acct for the down paymet for the car i would like to purchase early next year or later this year.
Started over because life happens.
I did it again even better this time. My highest score last time was 680

Starting Score: 513 Ex 520 Eq 534 Tu
Current Score: 703 Ex 702 Eq 701 Tu
Goal Score: 740


Take the myFICO Fitness Challenge



Message 10 of 57
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