How does Fico score view Settlements?

[Anonymous]

Im wondering how does fico view settlements verses paying the full balance of dept on delinquencies

Is there a difference? Im asking because Ive been told by a credit councilor that its view as almost as

bad as not paying it at all.

[RobertEG]

FICO scores the occurance of delinquencies and derogs themselves, and now how, or even if, the debt is paid.

A settlement vs a PIF is viewed negtively by future creditors if they do a manual review of your CR.  It says that, even though the debt was legally discharged, you nontheles had prior debt that you did not fully pay.  It may be a red flag in their decision to extend you new credit.