when making a settlement to creditors-if they put it in writing; can't they remove it from your report?

Answer 1

A settlement will not remove negative marks from your credit. A settlement is a negative mark on your credit. Anything less then paying the full debt is a chargeoff and will count negatively. There is no going back to fix missed payments.

Answer 2

No, they can't. It's YOUR job to make sure that the creditor reported to the credit bureaus that you settled the debt according to the offered & agreed upon terms.

ALL creditors MUST send a letter thanking you for your payment(s), whether you made the payment(s) over the phone with a check, used a credit/debit card or mailed in the payment or used a payment plan...such as 3 monthly payments of $350.88 to pay off the amount agreed upon to settle the debt.

They are required by law to report to the credit bureaus that the debt has been paid as agreed. Some dilly dally for 90-120 days to do this. Others, who are more on the ball, will send the reports in less than 30 days after the payment(s) clears your bank & theirs.

Call the credit bureaus & ask if they have received notice that the debt with the creditor has been settled. Be prepared to give your SSN, payment information including date, account numbers of creditor and/or original account numbers. Some creditors assign their own account numbers on top of the original numbers for their paperwork & tracking abilities. If the credit bureaus don't have the report yet, call the creditor back & ask them how long before send the paid as agreed letter. Then follow up with the credit bureaus again in about 3 weeks. Document ALL calls to the creditor & the credit bureaus so that you can make sure that Jane Creditor is doing her job at XYZ Collections & John Lender is doing his at the credit bureaus (Fake info inserted as an example).

It's not the big bad black mark on your credit that it used to be in the past. It can still come back to haunt your future purchases of a car loan, home loan or a simple store credit card like Best Buy, Target, Macy's, etc. You may be asked to explain the settlement or not, depending on the inquiring purposed lender.

I have several settlements on my own credit from stupidity in my early working years. I have applied for a car loan & was asked about the settlements. I explained them & the loan was approved, but I opted to not get the car at the time. I'm glad I didn't as I quit my job 6 months later. I also keep up my credit with my household bills: power, gas, phone/internet, cell phone & cable. I make sure to pay them on time & if I can't, then I call & make payment arrangements immediately.

There are tons of second & third chance loan places available nowdays. Sure, you may encounter a higher APR at first. Just pay the loan on time for 2 years, then call the loan company up & negotiate a lower APR. If they can't offer one yet, ask when you'll be able to get one. Most allow lower APRs at 2 years, some insist upon 3 years. Either way, you'll feel better about paying off the loan with a lower APR. Sometimes, if you have the available money, pay off the loan early & ask about an early payoff penalty. Some lenders make tons of money on them, others don't bother. Some will waive the penalty as a courtesy.

Answer 3

No it won't be removed from your credit but it will show that you payed it off or what ever U settled for.Good Luck

Answer 4

no they cant