paid in full vs. settling

[jcstarkey8826]

I searched for this, but everyones situation is different and couldnt find my situation. A discover charge off from about six years ago offered me a 50% settlement. Ive been reading about "paid in full" and "settled for less" is there any difference other than the wording. will it continue to show that I owe the other 50% or will the balance be zero. Im hoping to get that debt to zero because FICO is using it for my util and its at 117% right now. My other card is at 0% but both have/had a $500 limit.

So basically, what are the cons of settled vs paying in full?

[FrugalRican]

It depends. Did they agree to delete the tradeline if you settled for 50%?

[jcstarkey8826]

No, apparently discover NEVER deletes, regardless of amount paid. So Im hoping to get a non disclosure agreement, then dispute. Once the dispute gets no response it will be deleted. (hopefully)

[JP1968]

Hi. 

I have done the paid in full and settled for less.  Both reflect balances of $0.   The ones I PIF , read " current/closed; paid was collection"  or just "paid collection".  Those that I settled on read  " current/closed; paid for less than full balance" or " closed/paid, payment after CO for less than full balance" or " election of remedy".

I think I have a better chance at GW those accounts I paid than those I settled on, but I am still going to give it a try.

Hope that helped some.

J

[jcstarkey8826]

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@JP1968 wrote:

Hi. 

I have done the paid in full and settled for less.  Both reflect balances of $0.   The ones I PIF , read " current/closed; paid was collection"  or just "paid collection".  Those that I settled on read  " current/closed; paid for less than full balance" or " closed/paid, payment after CO for less than full balance" or " election of remedy".

I think I have a better chance at GW those accounts I paid than those I settled on, but I am still going to give it a try.

Hope that helped some.

J

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Yes it did. I just wanted to make sure it would bring my util down and the judgement would show paid. Then I'll try the non disclosure idea. Thanks for the help!

[FrugalRican]

Potential lenders will raise their eyebrows if they see a negative account that says that you paid less than the full balance. More so than if it just says you Paid in Full as agreed. So if there is anyway you can get them to delete, go for it. If not, well, you just take what options are available to you. But settling will be a red flag to SOME lenders, not all.

[jcstarkey8826]

Im just doing this for a mortgage because I'll have to pay it for FHA. It falls off in 2 years so It doesnt reflect my current habits. My mortgage officer says they use automatic underwriting and I just need the middle score above 620 and pay the judgement.

crossing my fingers I can get it removed, but If not Its ok too