What is the difference in Credit Cards of settling vs paying balance in full?

I let a credit card go without payment until a law firm called me for collections, threatening to take me to court.

They offered a settlement if I paid 70% of the amount I owed rather than making me pay the balance in full.

Does this affect my credit different?

Should I still pay the balance in full, rather than take the settlement? Or would I be wasting my money paying the balance in full? For example, is settling going to make applying for a home loan any different than if I paid in full at this point. I would have to have settled saving a few dollars only to find out I have worse credit than if I paid in full and end up paying a higher interest rate, simply cause I took this settlement.

What is the difference in Credit Cards of settling vs paying balance in full?

A paid negative is no different than an unpaid negative.

If you pay without requesting deletion upon payment, the account will be updated showing paid or settled.

Also, the updating will make the account seem to appear newer than it actually is.

They cannot legally re-age the time the account can be on your reports, but updating is not re-aging.

If you settle, you would save money but you may also have to file taxes on the forgiven amount.

Have you checked the collection SOL in your state to see if you are still within the SOL? If you are out of the collecting SOL you have a legal right to send them a SOL letter telling them the account is past the legal time for collection.

Have you sent a debt validation letter to make sure the amount they claim is owed is not an illegally inflated amount and that they have the legal right to collect the debt?

You might click on my profile and do some reading in the sites I have listed - the FDCPA, FCRA, etc.

Learn your rights and learn how to use them.

edit++++

The SOL for Ca. is either 2 years or 4 years

2 years is for credit cards that a person had not applied for

(like back when credit companies would just send people credit cards when the person had not requested a card with them)

4 years for a credit card that was applied for

http://whychat.5u.com/States/state-ca.ht...

What is the difference in Credit Cards of settling vs paying balance in full?

loan

Your credit rating has been trashed prior to this. I assure

you that they were sending nasty messages to the

credit companies (such as TRW) long before they got

a collection agency involved.

You may have gotten some of your credit back by

paying the 70%, but nowhere near what payment

in full would get you. With payment in full, and perhaps

with interest, you could potentially (with the cooperation

of the credit issuing company) get the black spot removed

from your credit record.|||I had the same problem. I went for the settlement. What happened is that they never reported it to the Credit Reporting Agencies. Luckily I made sure to hold on to receipts and I had to dispute it. What the CRA did was put it on my report as it was paid in full and the account was closed. I%26#039;m glad I didn%26#039;t pay in full because come to find out that any negatives on your report are allowed to stay on your report for 7 years regardless if you%26#039;ve paid in full. Only time it will be deleted if the company doesn%26#039;t have proof that you owe it. As long as they have the proof, it will still be on your credit report. I say go for the settlement. I think it%26#039;s just a mind game collecting agencies try to play with you so they will get more money.|||If you settle, the %26quot;excused%26quot; amount is considered income... you will receive a 1099. This is something to consider as well, as it might affect your taxes. Good Luck.