I've been giving tips and helping a friend in regards to credit rebuilding. Has a OneMain unsecured personal loan for 10 K opened in July 2021 (balance 8K right now). Has recently had medical issues and will need surgery. Not able to work at this time but is receiving short-term disability from employer until returns to work after surgery in approx 6-8 weeks.
Is currently 60 days late (as of Sept 30, 2022) on OneMain loan and will be 90 days late at the end of October 2022. Interestingly enough, OneMain has been sending email correspondence offering to settle for 3 K if payment can be made within next 21 days. Friend asked me how this will affect credit report and I said I honestly don't know. If paid in the next 2 weeks, it won't even technically be at the 90 day late mark so it isn't charge off status yet.
Any ideas how this may be reported if settlement offer is chosen? And how will this affect FICO score if chosen? I've already warned friend that a 1099-C will likely be issued. Current FICO score is 556 and 562 on TransUnion and Experien.
Is it still open? Or closed. May list it as settled for less, $0 balance. And the lates will stay since there was an offer possibly. If it keep the CO staus away. Get it done ASAP. Thats a score killer for yrs.
@ItsCASHual wrote:I've been giving tips and helping a friend in regards to credit rebuilding. Has a OneMain unsecured personal loan for 10 K opened in July 2021 (balance 8K right now). Has recently had medical issues and will need surgery. Not able to work at this time but is receiving short-term disability from employer until returns to work after surgery in approx 6-8 weeks.
Is currently 60 days late (as of Sept 30, 2022) on OneMain loan and will be 90 days late at the end of October 2022. Interestingly enough, OneMain has been sending email correspondence offering to settle for 3 K if payment can be made within next 21 days. Friend asked me how this will affect credit report and I said I honestly don't know. If paid in the next 2 weeks, it won't even technically be at the 90 day late mark so it isn't charge off status yet.
Any ideas how this may be reported if settlement offer is chosen? And how will this affect FICO score if chosen? I've already warned friend that a 1099-C will likely be issued. Current FICO score is 556 and 562 on TransUnion and Experien.
If he can afford the settlement offer is there a reason he can't/shouldn't make the payment on the loan now?
