I have a settlement agreement on an account that's never been late, no collection activity, and is reporting paid as agreed since being opened in July 2011. The rep told me once it's paid off, it'll report as settled with a zero balance...could this be considered an adverse action and lead to a score drop? Also, my simulator projects a 70-90pt minimum increase in my score if I lowered my CC balance over the next 24months...but I was able to do it in one month...does that mean I could see that much of an increase by the next reporting?
Starting Score: 564 on 3/15/12
That's not good because it's actually a satisfactory account now. I never asked for a PFD because I didn't even know about it...they only agreed to settle because the debt is illegal in my state and they have no recourse otherwise. I'm actually paying 100% of what they loaned me, just none of the outrageous interest...do you think it's too late to press for a PFD now? They did send me our agreement in writing, but I still have 2 more payments...should I say something now, or wait until I'm done paying?
@RobertEG wrote:The OP stated that the account has never been delinquent, and for whatever reason, the creditor has agreed to settle the account for whatever balance is remaining.
It was not even stated that the account was or will be closed.
Under those conditions, the account, if still open, would not have a current status of "Paid." That current status only relates to closed accounts. The current status would be current. If the account was closed with no delinquencies, it would be marked as Paid, closed, $0 balance.
Special comments pertaining to a settlement are only proper and reported on closed accounts with delinquent debt that has now been satisfied.
The current status on closed accounts with a satisfied, previously delinquenct debt must read "Paid" regardless of whether it was paid in full or settled for less. Recordation of settled for less than the full amount are made by way of a separate special comment code.
In the situation at issue, no special comment of paid for less would be appropriate. It is actually simply an adjustment of account balance by the creditor.
This makes much more sense...especially since there haven't been any issues with the account. However, it is a personal installment loan from Western Sky "serviced" by CashCall and I've seen some rumblings about these types of loans being less than desireable score-wise...is it beneficial to seek deletion for that reason alone, or does the benefit of having a 100% positive TL for less than a year outweigh any percieved risk or point-loss on my end?
@01mommy wrote:
@RobertEG wrote:The OP stated that the account has never been delinquent, and for whatever reason, the creditor has agreed to settle the account for whatever balance is remaining.
It was not even stated that the account was or will be closed.
Under those conditions, the account, if still open, would not have a current status of "Paid." That current status only relates to closed accounts. The current status would be current. If the account was closed with no delinquencies, it would be marked as Paid, closed, $0 balance.
Special comments pertaining to a settlement are only proper and reported on closed accounts with delinquent debt that has now been satisfied.
The current status on closed accounts with a satisfied, previously delinquenct debt must read "Paid" regardless of whether it was paid in full or settled for less. Recordation of settled for less than the full amount are made by way of a separate special comment code.
In the situation at issue, no special comment of paid for less would be appropriate. It is actually simply an adjustment of account balance by the creditor.
This makes much more sense...especially since there haven't been any issues with the account. However, it is a personal installment loan from Western Sky "serviced" by CashCall and I've seen some rumblings about these types of loans being less than desireable score-wise...is it beneficial to seek deletion for that reason alone, or does the benefit of having a 100% positive TL for less than a year outweigh any percieved risk or point-loss on my end?
Just checked the TL again...
Status: Open/Never late
Credit Limit/Original Amount: 2600
They're not including interest in the reporting amount...so technically, I'm NOT settling report-wise because I'm paying them full $2600. The interest is only reflected in the recent balance however