Settlement Agreements

[Anonymous]

I am trying to rebuild my credit scores and pay off my outstanding credit card debt with my tax refund.  Someone told me to try and get as many settlement agreements as I can when paying off the credit cards.  If I pay my balance with a settlement agreement (for example I recently got 50 cents on the dollar for one outstanding balance) will this negitively effect my credit score because I haven't paid the balance in full.

I want to do the right thing regarding my credit scores and I also want to use my money in the most efficient way possible.

Thanks for all your help.

gabjaczac

[203bravo]

Someone told me to try and get as many settlement agreements as I can when paying off the credit cards

Who told you this... That's a scary statement.  Most creditors will only settle with you once the account is delinquent and/or in a charge off status.

will this negatively effect my credit score because I haven't paid the balance in full.

Afraid so.. The only way to get a perfect rating on any account is to pay it according to the terms of the original agreement.  Since you are not doing this then you have gone bad on said agreement.

I  want to do the right thing regarding my credit scores and I also want to use my money in the most efficient way possible.

Isn't it funny, we ALL make this statement too late    Best of luck.

[Anonymous]

How much settling will affect your scores depends on the current condition of the accounts.

Are they already charged off? In good standing?

Are these accounts being reported by the OC that you are settling?

If they are already charged off, what is the DOFD? The date you went delinquent and never caught up before the account was charged off.