I was given the option to pay in full or settle for almost a 3rd of the amount. how big a difference am i going to see on my credit report if i settle rather than pay in full.
2006-11-06 10:54:18 · 4 answers · asked by skee_bumm 2 in Business & Finance ➔ Credit
On you credit report is going to say settled for less that full amount and the credit card company is going to give you a 1099 that you have to file with the IRS and you will have to pay about 40% of what ever the unpaid amount is in taxes.
2006-11-06 10:59:43 · answer #1 · answered by rimoneyman 2 · 0⤊ 0⤋
If you are not using an agency I recommend that you find one immediately. Settling the accounts is difficult and the creditors are notorious for sending out a letter in writing you paying the account and then telling you that the person that offered you that settlement no longer works there and some new supoervisor won't accept the settlment or report it directly either. YOu could pay up a third and then they want the other 2/3rd's or otherwise they will see you in court.
Settlement comapnies such as www.fdnsolutions.com can support your request to settle out one account or many whatever you prefer. Some flat fee arrangements and lower debt loads can be prenegotiated on and settled with out payments or bad credit history. We currently are running a 94% sucess rate with having the creditors report paid as agreed or paid in full with a zero balance on accounts that qualify.
2006-11-06 19:27:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Make sure you get it in writing that you have paid as agreed and that the creditor will report the debt as paid. If not, you could lengthen the statue of limitations and your credit report can show settled (which has a slightly more negative effect than paid). Also, make sure the only change the reported dated (date last updated to the bureaus) as changing instead of changing the opened date (which is illegal, but some will try). That way you only have a slight drop since your account activity looks more recent instead of having to try and dispute the item for 7 more years.
2006-11-06 18:59:03 · answer #3 · answered by Mariposa 7 · 0⤊ 0⤋
It will show as settled instead of paid. It's not the best thing to have and drops off in 7 years + 180 days from the first nonpayment. You can ask that the chargeoff be removed after payment or ask them to update it on your credit as paid if they are not willing to remove it. Get it in writing also.
2006-11-06 19:14:16 · answer #4 · answered by eehco 6 · 0⤊ 0⤋