I recently checked my email and it appears I've been given a tempting settlement offer from LVNV for my credit one card. My original balance before being sent to collections was $628... they offered to settle it for $251.20.
My questions, since I've never settled anything before...
1. Will contacting them about settling it reset the time limit or have any other I'll affect? Date of first default was some time in 2016
No, contacting them will not reset how long it can be reported on your CR. Removal is based on DOFD and type of delinquency
2. Should I counter their offer with a slightly low amount? I only ask this because previous emails have stated that it's being sent to a different company soon... maybe that fact will work in my favor?
Older the debt, better your chance for lowering the settlement amount. With that said, as bad as LVNV is, next one could be just as bad, if not worse.
You're not being offered a bad deal. If you wait, and their collection rights are terminated, you might be able to catch it and pay it before the next CA reports, or it might be one that would agree to PFD, but I would not count on that, either. Up to you how you want to proceed
3. If they won't budge with the amount, should I ask them if I can split it up in to payments? I don't have the full 251.20 right now, but payments are doable right now.
If you decide to pay, sometimes settlement is only when total amount is paid in full. Other times they will allow payment plans for settlement amount.
You'll have to talk to them about that
4. Do they usually consider PFD? Or even not responding to disputes so it falls off my credit report?
I have only seen a couple of instances where reporting was deleted. For the most part, they do not PFD. It cant hurt to try
5. What impact does settling have on my credit of they don't do PFD or come back with valid should I dispute after its been paid off?
Scoring wise, not much. Payment in full looks better on manual review should you need it to buy home, auto or anything that would require human eyes on it . Disputing correct info often leads to update and that causes score drop. Disputing correct info can and does backfire. Up to you, just be aware that is not without consequences
Any help is greatly appreciated! We're In a MUCH better situation money wise right now with my fiances new job. And I would love to repair my credit and his!
Hi and welcome
Good luck with your future rebuliding efforts!
Settling an account for less than originally agreed is a comment ,when it appears on any credit account on your cr is considered a serious derogatory which will severely effect your Fico score in a negative way.Paid in full is where you want to be.GOOD LUCK...