Settlement

[FredFlinstone]

I hade a carecredit account that is reporting a lot of late payments and I was in a financial jam and decided to do a settlement offer with them. I'm currently making reduced payments with them and have one payment left. On my credit reports it is showing as a charge off at 104 % utilization.  I called them and they stated that once the payments are finished they will report it to the credit bureaus as settled paid in full.  Will that raise my credit  since my utilization  will go down or should I try to have it removed from my credit? I realize now (a little late) that I should have asked for a  deletion  after paying  the settlement. But how would I go about a deletion besides just sending letters begging for a deletion?

thanks. 

[Remedios]

Hi and welcome to the forums. 

Synchrony will not delete charged off account, so best you can do is pay it off. 

As far as "settlement", if you've agreed to pay less than owed, it will say "Paid, settled for less than owed" and if you're paying off entire amount owed, it will update toreflect $0.00 balance, annotated as "Paid" 

"Settled, paid in full" is a contradiction, so that's not possible. 

From scoring perspective, I don't think there is a difference between charge off paid in full and charge off settled for less. 

If you try disputing after it's paid to get it removed, it will come back validated, and it will drop your score again due to update to derogatory account (even if paid).

Of course, there are plenty of sketchy websites that will tell you otherwise, so if you decide to go that route, be prepared to see a loss. 

How it affects your scores is not possible to predict, there are too many factors involved with dirty files. You might see gains from reduced utilization, you might see no gains if you have other charg offs that are reporting regularly, your scores might remain same depending on what else is going on with your file. There isn't enough info in your post to determine if gains other than from reduced utilization are possible.