Capital One Payoff vs Settlement

Anonymous · ‎08-23-2019

I was making payments of $59.80 for 5 payment and last payment will me $59.47, I hame made 3 payments so far I contacted Capital One about paying off the remaining balance and they offered a sett;ement on the balance for less than the total balance. They also told me that this would be reported to the credit agencies as settled in full rather then paid in full. I replyed back letting them know that i wanted to pay what I owe in full. Have I made the right decision in paying in full instead of taking the settlement? Is payed in full better than Settled in full on my credit report? The Settle ammont was $119.27. What i have left to pay is $238.87.

Thanks for the help

Remedios · ‎08-23-2019

@Anonymous wrote:
I was making payments of $59.80 for 5 payment and last payment will me $59.47, I hame made 3 payments so far I contacted Capital One about paying off the remaining balance and they offered a sett;ement on the balance for less than the total balance. They also told me that this would be reported to the credit agencies as settled in full rather then paid in full. I replyed back letting them know that i wanted to pay what I owe in full. Have I made the right decision in paying in full instead of taking the settlement? Is payed in full better than Settled in full on my credit report? The Settle ammont was $119.27. What i have left to pay is $238.87.
Thanks for the help

Yes, it's better. While it's still a negative, it shows you've taken care of your debt in full, so no loss to the lender.

Scoring wise, makes no difference, but application and manual review wise, a lot better look.

gdale6 · ‎08-23-2019

No diff for Fico scoring PIF or Settled in Full. It is the right thing to do.

Anonymous · ‎08-30-2019

I just payed this collection off with Capital one for the full amount. On credit Karma it shows as closed and 101% ussage, on experian it shows $302 balance with credit limit $300, usage 101% status negative. Will I see any increase or decrease in my fico and vantage score since I have payed this account off? Will it also take like 30 days for Capital one to update my credit file? My Credit Karma and Experian wont update again untill atleast next week.

thanks for the help.