@valenzy wrote:Hello.
So today I received a call from Client Services Inc. about my charged off Chase credit card. Balance is abt 7,000. Please note that I had already been making monthly payments on this debt. But long story short, this call was an opportunity to settle the debt (for about 30% of remaining balance) and be done with it. I asked to think about it...aka reach out to you wonderful folks on this forum. Clearly its a great offer. Paying down balance also reduces my revolving utilization which will most likely help raise my scores
But I'm worried that once paid off, the debt will be reported as "Settled for less than debt owed" as opposed to "settled in full". I remember reading somewhere on this forum that the latter is better than the former in terms of impact on your CS. The rep did also mention that Chase reserves that right to report to the CBs that the balance was settled for less than the initial limit. That, plus the fact that in the future, Chase might refuse to grant me credit (or less credit) blah, blah...because of this settlement offer.
What impact (if any) do the above terms have on credit reports? Is it possible to request that once settled the debt be reported as "paid in full"? Any success stories getting approved for other chase products after charge offs were settled for less than initial balance?
Thanks in advance for your feedback!
There is no difference to credit scoring by Fico to either paid in full or settled for less. You can ask that it show PIF but the odds of getting it are low. Chase may blackball you for 10 years on a settled for less but sometimes there are exceptions.
