Score changes with settled accounts?

[JVnyc]

Maybe I didn't explain it properly.  I look at it like "hey, I now have the money to pay off the total amount I owed back when we settled the account for 50% of the balance".  I assume it is unlikely this ever happens, as the debt has been written off by the creditor and no longer exists.  I was looking at it as good-faith gesture to pay back what was once owed in return for deletion of any negative information on the credit report.

Again, it's totally a stretch - just wondering if anyone has ever heard of such a thing.

[longclimbback]

I started a post on this subject a while back. I settled a HSBC credit card for $1000  less than what was owed. In the last couple years I've tried calling them offering to pay the difference 3 times and have been told there is legally no difference to repay.  It goes against my logic, but they wouldn't take my money. The account falls off next month hopefully. In retrospect I should have let the account go to full charge-off before I settled. Then the account falls off 6 months from the date of the 1st late payment that lead to the charge-off. The account would already been gone if I had just waited another month.This part of the credit law makes no sense to me but a settlement falls off your report quicker if it's a full charge-off (180 day late) versus settling at 150 days like I did. My sears card went to 180 days late, I settled, and it's been off of my report since Christmas.

[JVnyc]

Interesting - so what exactly is the rule for when settled accounts fall off your credit report?  

I have a byline for Barclay's Bank (Apple credit card) that has a 30-day late (Sept 2008), 60-day late (Oct 2008) and 90-day late (Nov 2008).  I settled with them in December 2008 (which I now know was very dumb, but at the time I was desparate and ignorant of how this all works; didn't know my options basically) and my credit report has a "Settled - less than full balance" in the description area.

Can someone explain to me when exactly the three lates will fall off?  Also, does the entire byline fall off after 7 years as well?  I've seen lots of different explanations of this.  Thanks for your help!!

[AndySoCal]

01mommy,

A settled account usually implies that it is for less than full balance. Fo example if you owe $500.00 a consumer and creditr might settle for $300.00 due to the ability to pay.  From your posts it sound like like you are paying off the loan with no interest just principal only. Am I correct? 

[01mommy]

That's correct...but since I'm not paying the interest, they're considering it a settlement offer. The loan is what my state considers "usurious" anyway...it might take some extra effort, but I'm confident I can get them to make sure it doesn't impact me negatively. That's why I was asking if it would be better to get the TL deleted since it's new and one of those less than desirable consumer finance loans.