Will it look bad on my credit report if I agree to a settlement offer?

I have a credit card debt. I have been offered a settlement of 60%.

The letter says that once paid, they will consider the account settled in full. What will that look like on my credit report and how will it affect it negatively?

Will it look bad on my credit report if I agree to a settlement offer?interest rate

I am a former financial counselor for a consolidation firm in Orlando so I can answer your question. Whenever you get a settlement offer from a collection agency or a creditor, you have to way the pro%26#039;s and con%26#039;s of your decisions. Two big factors determine your credit score: 35% is payment history, and 30% is overall debt. Based on these two factors, by making a setlement you%26#039;re score will increase somewhat because you are satisfying the debt with that creditor, but may not increase as much as if you paid off the entire debt completely. Score may not be your only concern, because future lenders will see the special status of settlement for this debt which lenders frown upon. It%26#039;s as if you borrowed $100 from a friend and only decided to pay him/her back $60! It satisfies your friend who you owed the money that they got anything back at all, but don%26#039;t go asking other friends for money, you already have a reputation!

So in summary, if your financial situation only allows you to pay a settled amount, then by all means pay it. That collector at least will stop calling your house asking for money (PS make sure to get the offer in writing as described above). But remember this, negative credit history can remain on your credit report for a length of 7-10 years. Or your other alternative is to slowly pay off the debt by making smaller payments. If it%26#039;s with a collection agency, then they probably aren%26#039;t charging interest and you are already used to their collection tactics. You may be able to pay it off sooner than 7-10 years, and remember they will show %26quot;satisfied%26quot; on your report instead of %26quot;settled%26quot; which is much better.

Will it look bad on my credit report if I agree to a settlement offer?

loan

If you can accept it, do so.

But do NOT say yes and fall thru with it.

A Settlement Pay Off is still a Pay Off.

If you mess it up....it will be worse.|||Well it won%26#039;t look as bad as it probably does now, as I am assuming you%26#039;re in default (way past due) or you wouldnt be settling. It should show as “settled in full” once you%26#039;ve paid. It will still be a negative listing, but it will show that you made an effort to satisfy the debt.

The best bet for you would be if you could get them to agree to remove the listing completely, but likely they won%26#039;t. I would take the offer (GET IT IN WRITING) and wait a couple of months, pull your credit reports (annualcreditreport.com) and see what the listing shows. After a period of time you can dispute the item through the bureaus. It is possible to get information removed that is %26quot;unverifiable%26quot;, meaning if they dont respond or no longer have the records then the account gets removed. So yeah I say take the settlement. Good luck.|||First of all a settled account is a good thing, as opposed to a collection account.

If you have not settled yet, make sure the wording is %26quot;paid,satisfactory%26quot; and any reference to %26quot;late payment%26quot; or %26quot;charge off%26quot; be deleted from your file. and get it in writing.

And, in some cases, you can get them to delete the information entirely (as I have done)

e-mail me at farrellhi2000@yahoo.com and I will attach a scanned copy of an actual sample %26quot;creditor settlement agreement%26quot; letter. This letter is important because, If they don%26#039;t report correctly to the credit bureaus, you can send this letter to the bureaus yourself.