settled for less than full balance vs. charge off regarding credit score

[Quarterchips]

Does a "legally settled for less than full balance" look better than a charge off in regards to credit reporting?  The settlement would be with the OC before any charge off took place.

Thanks!

[mamalawery]

no to sure abt how it looks, but when you sttl at least you paid the acct. when an acct charges off it is then on your cbr's twice. once for the original creditor and then again for the ca/attny office that get's it.

[fused]

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Quarterchips wrote:

Does a "legally settled for less than full balance" look better than a charge off in regards to credit reporting?  The settlement would be with the OC before any charge off took place.

Thanks!

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No, if the trade line is reporting a status like this, they are equally bad in FICO scoring. The good news is that you paid it, this is looked at more favorably by some creditors when a manual review is done.