Settling closed Chase account that is current.

[taz3261]

I am struggling financially and want to know if settling a chase credit card for less is worth it? It will only save me 290.00. I have chap.7 discharged 2005. How will the settled account impact my fico? I am not looking for new credit or any loans? My main focus now is paying off unsecured credit card debt. And Then my car note over 3 yrs or sooner.

[llecs]

Assuming they accept it and they mark it as settled, then the TL would be scored on par as a CO. Aside from the impact to mix or util, I'd guess 50-70 on a clean report and less if you have other baddies. Much of the damage would gradually fade over the remaining CRTP.

[taz3261]

Thanks!

[taz3261]

I do have other baddies such as a paid collection to Verizon which I tried to goodwill and was unsuccessful. Heavy use of revolving credit. That's why I focusing on paying off debt and past due mortgage greater than 90 days. So I figured a settled account won't do more damage now. How long does a collection account stay on your credit? How long does a settle account stay on ur credit report?

[llecs]

I'd guess the 7 year clock starts ticking when you settle it and could possibly report as a positive for as much as 3 yrs beyond that. YMMV.

[Booner72]

Any post-bankruptcy derogs should be avoided at all costs.  It will cost you in the end and I'd bet you'd regret this later for only $270.00.  I know I would (and did - not a CO but similar).

[RobertEG]

I agree the relevant date for exclusion of the settled for less remark would be 7 years from date of occurance of the settlement.

It would be covered under FCRA 605(a)(5), which is the catch-all for "any other adverse item of information," and sets a period of 7 years from the occurance of the adverse item.

[taz3261]

Thanks for the advice I will just pay the balance due and forget about the settlement 7 yrs is a loooonnng time!!

[taz3261]

Unfortunately Chase says once u make payment agreements to settle they can not reverse that decision if pymt are not received the will charge off the account...smh. Oh well I learned my lesson be certain of what u want when handling credit related matters.

[IOBA]

If you do settle with Chase, please watch your credit report carefully for the next few years.

My friend settled with Chase.   Chase then changed the reporting to "Seriously delinquent" (it was NEVER delinquent! no late payments at all), "Charge off" (they never charged off any amount!  The interest rate was lowered.  They got their money.), "Collections"  (it was NEVER sent to collections!  ever!).

When customer service was asked about their inaccurate reporting, the cs got defensive and said it was correct and that they had ever right to do that because they didn't make all the money they should have off of the deal.   We asked the to fix it.  She said no.   So  we reminded her what the law was and that we were motivated to report their actions immediately.  I might have thrown something in there about a financial compensation....    She back pedaled and said maybe they had made a mistake in reporting and could correct it.   We asked for a letter to confirm their actions.

We received the letter and we continued to follow up looking at the credit report.  

My advice - just watch your credit report, specifically how Chase reports.