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Capital One Payoff vs Settlement

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Capital One Payoff vs Settlement

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

3 REPLIES 3
Community Leader
Mega Contributor

Re: Capital One Payoff vs Settlement


@Acooper69 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. 

Message 2 of 4
Moderator

Re: Capital One Payoff vs Settlement

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

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 3 of 4
Established Member

Re: Capital One Payoff vs Settlement

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.

Message 4 of 4
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