Hi y'all.
On my Path to Apple Card, they list two charge off they want me to pay, however does anyone think it matters if they are settled for a lower amount?
One is $2617 and the other is $920 (both Barclays), if I settle for a lower amount how will it update on my report? Will they show still $0?
Thanks and sorry if this isn't in the right forum.
There's no difference score wise between PIF or settled for less. Can it matter in a lending decision under human review? Maybe. Are there collection accounts associated with these, or just the OC CO accounts? If there are no CAs, you're probably good to settle. The COs will be updated to a $0 balance, and start to age. If there's a CA involved, it gets a little more tricky.
@RSX wrote:definitely settle them - hopefully for 40-50% of the total amount
Reporting. to $0 is your primary goal
the note that says Paid in Full or Settled for Less doesn't matter to anyone but you and your checking acct
Awesome thank you!!
@SoonerSoldier33 wrote:There's no difference score wise between PIF or settled for less. Can it matter in a lending decision under human review? Maybe. Are there collection accounts associated with these, or just the OC CO accounts? If there are no CAs, you're probably good to settle. The COs will be updated to a $0 balance, and start to age. If there's a CA involved, it gets a little more tricky.
Hi! I have 0 collections thank goodness, and Barclays never sent these to any CA. Still in house.
I ask because the Path specifically referenced taking care of the balance. I didn't want to settle for 50% and it still shows remaining balance amount.
Tryna see if I could save a few hundred $ while also completing that part of the PATH.
Yes, when a creditor agrees to settle an account for a lesser amount, the balance on the CO account goes to $0. It will stop affecting your utilization, and begin to die the slow aging death.
@RSX wrote:if you have 50% of that amount ready to go, call them and see if you can settle while on the phone - but you need to be ready (cash wise)
i do think some people setup a repayment plan for 6 months or so as well
but better to call - offer 40% - settle for 50% if they wont budge, and get it down to zero
Thank you. I think I'm gonna do it. At least one of them today.
Should I bother with asking for a request to settle in writing, or should I not have to worry about that with a Charge Off?
>Thank you. I think I'm gonna do it. At least one of them today.
Should I bother with asking for a request to settle in writing, or should I not have to worry about that with a Charge Off?
It's certainly a good CYA measure to ask for an email/letter saying the creditor will agree to consider your account settled in full in exchange for the agreed upon payment amount. This way you have ammo for dispute if the need arises. With Barclays, you're probably ok without it, but it's your call. Often, a creditor will send you an email agreement while you're on the phone with them. If you feel safer having it, ask for it. It's standard practice, and shouldn't ruffle their feathers.