@Nicg88121 wrote:If I already have charge offs will settling the debt still hurt my credit score vs if I pay it in full?
If you pay them off then the amount comes off your overall utilization, then it can stop updating and age back in time helping to raise your Fico.
@Nicg88121 wrote:Everything I currently owe is charged off. If I settle for less than the amount owed will it negatively effect my score?
@gdale6 wrote:
@Nicg88121 wrote:If I already have charge offs will settling the debt still hurt my credit score vs if I pay it in full?
If you pay them off then the amount comes off your overall utilization, then it can stop updating and age back in time helping to raise your Fico.
No there is nothing in Fico that would differentiate a PIF or settlement for less. The creditor may put a comment that is was settled for less than full amount and you may have to explain why you settled for less with an underwriter when apping for new credit (home, car are the most prevalent). As far as apping for a credit card the computer is not going to take into account settle for less or PIF.
@Nicg88121 wrote:
@gdale6 wrote:
@Nicg88121 wrote:Everything I currently owe is charged off. If I settle for less than the amount owed will it negatively effect my score?
@gdale6 wrote:
@Nicg88121 wrote:If I already have charge offs will settling the debt still hurt my credit score vs if I pay it in full?
If you pay them off then the amount comes off your overall utilization, then it can stop updating and age back in time helping to raise your Fico.
No there is nothing in Fico that would differentiate a PIF or settlement for less. The creditor may put a comment that is was settled for less than full amount and you may have to explain why you settled for less with an underwriter when apping for new credit (home, car are the most prevalent). As far as apping for a credit card the computer is not going to take into account settle for less or PIF.
Thank you! I have no near future plans to buy a car or house. My car is paid for and only 4 years old. I just want to rebuild my credit and get in the mid 600s before years end. Im at 548 currently and if i can settle all my debt I should have it all paid off by end of summer.
Thats a good goal and you may even hit 600 just by taking care of it all.