Negotiate to pay loan for less?

[Anonymous]

 I have a loan with a company named cash call and interest rate is in the high 60% it use to be more but I called the company and they decided to lower to the % mentioned. I was planning to negotiate to pay off account for less? Will this hurt my credit and if so how long?

[JoeBJay20]

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@Anonymous wrote:

 I have a loan with a company named cash call and interest rate is in the high 60% it use to be more but I called the company and they decided to lower to the % mentioned. I was planning to negotiate to pay off account for less? Will this hurt my credit and if so how long?

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Welcome to the forums!

Sounds like you had a payday loan, which has happened to more than a few of us.  Settling accounts hurt your score if it is reported to the bureaus as settled for less than the full amount. If it is reported as settled, then it hurts your credit for as long as it is reported, which is 7-7.5 years for negative information.  However, it is very much possible to settle for less than the full amount and still have the creditor report the amount as paid in full.  It's simply a matter of requesting that the account is considered closed as paid in full.  When you approach them to settle (mail is best because it allows you to have a paper trail), simply request that they consider the account closed in full.  Is this account currently being reported on your credit reports?

[RobertEG]

FICO scoring does not consider your current interest rate, or the status of paid in full or paid with a settlement for less than the original amount of the debt.

It scores prior derogs in reported payjment delinquencies.

As was asked previously, what has this creditor posted to your credit report?

FICO only scores what is in your CR.  What have they previously posted to your CR?

What is the DOFD on the delinquent loan?