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Settlement

laryn41
Frequent Contributor

Settlement

Will a settlement look bad on you report.  Or should you pay in full. Will a settlement raise your Credit Score?
Message 1 of 12
11 REPLIES 11
Tmleverage
Frequent Contributor

Re: Settlement

It would probably depend on how old it is, I paid about 8 of them in
settlement just before I found this site and the art of PFD letters
and I have good fico success with the accounts showing 0 balances
but also mine are close to the 7 year mark and will start to fall
off next year and the year after so I can live with them for a year or 2.
If they are still fresh in age I would send out PFD letters and get the
CA's to remove there negative info from the reports or no payment,
I will be sending GW letters out soon..
Also definately get stuff in writing as NCO financial pulled a fast one on me
and Paid only themselves from the settlement offer and not the CC company
wich updated there info to reflect the initial default amount and not a paid off
balance, although the balance is a lot lower now than before but they should
have paid them off completely.
Message 2 of 12
dltroi
New Member

Re: Settlement

I have been working hard on my credit scores as well - typical story, lay off 5 years ago, couldn't pay all my bills - I just got a settlement offer on my Speigal account (last activity 2002) for 50%....I would like to pay this but I would also like to have the derogatory - 19 times late/charge off removed...This would take me in to the high 600's --- very humbling experience to go from a gold AMEX, new car, house to not being able to get my electric turned on without a deposit...
 
Message 3 of 12
laryn41
Frequent Contributor

Re: Settlement

this is a couple years old.  They said they would do a PFD if I paid in full.  but also offered a settlement of 50%.  I don't know what to do.  How much would it help my score either way?
Message 4 of 12
Tmleverage
Frequent Contributor

Re: Settlement

Always best to pay in full but if cash strapped then pay in settlement..
If they say they will PFD if you pay in full and you have that in writing
then that would be your best course of action and you will not see any derogs
on your report.
A pro here could give you the exact impacts of paying either way my
scores have been going up even though I paid in settlement but I had not
learned about all the types of letters to send to the CA'S until after the fact
I would have have chosen to PFD in full if I had known better but remember
the CA'S also pay pennies on the dollar to your derog accounts so in essence
you are just paying them...
Almost like blackmail and extortion if you ask me but we did get ourselves into trouble..
It comes down to what will you be comfortable with and what are your goals in the future
 
Message 5 of 12
laryn41
Frequent Contributor

Re: Settlement

true dat...but it would hurt my scor to pay the settlement either.
Message 6 of 12
Tmleverage
Frequent Contributor

Re: Settlement

I would get the PFD in writing and pay the full amount for delete if
I had to do these all over again, I hadn't known about this before I
paid mine so your best course of action is paid in full for delete..
Message 7 of 12
dltroi
New Member

Re: Settlement

So I sent the PFD to the company offering the settlement.  I could and would be willing now to pay what I owe - I did use the card during a very difficult time.  I just want the lates/collections removed.  Since the note was NOT from Speigal but rather a collection agency, I wrote the collection agency...should I send one to Speigal and offer to pay the full amount?
Message 8 of 12
dltroi
New Member

Re: Settlement

Want to get an email alert when someone writes back
 
Janice
Message 9 of 12
Tmleverage
Frequent Contributor

Re: Settlement

If it is a CO and sold then send it to the CA...
Message 10 of 12
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