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Hello,
I am attempting to help my wife rebuild her credit. She had a well past due and over limit Milestone account. They offered a settlement of $350 to settle the account which had a balance of just under $700. I accepted and paid the $350. This was 18 days ago. They applied the payment immediately which is reflected however the settlement has not.
The account is now showing past due with a missed payment. When I called they said they have to wait until the next billing cycle to apply a settlement. Does this sound correct?
@BEN52 wrote:Hello,
I am attempting to help my wife rebuild her credit. She had a well past due and over limit Milestone account. They offered a settlement of $350 to settle the account which had a balance of just under $700. I accepted and paid the $350. This was 18 days ago. They applied the payment immediately which is reflected however the settlement has not.
The account is now showing past due with a missed payment. When I called they said they have to wait until the next billing cycle to apply a settlement. Does this sound correct?
assuming all of the terms of the settlement were met, yes, it's typical for the first update to change just the balance and a second update (about a cycle later) to resolve the balance/update with settlement terms etc.
Yes it sounds correct. Most CAs take two billing cycles to fully close out your file.
So will she get hit with more negative marks in the meantime?
@BEN52 wrote:So will she get hit with more negative marks in the meantime?
It shouldn't, no. Just a residual hit from a balance still remaining after the first update, but that's it.
It sounds like you're experiencing a common issue with the timing of settlement applications. Typically, creditors may wait until the next billing cycle to officially mark an account as settled, even if the payment has been processed. It’s essential to keep records of your settlement agreement and payment for your reference.
For more guidance on rebuilding credit and managing accounts regarding Mymilestone card login you can see video.