Can I settle with a credit card and not ruin my credit?

Answer 1

When you pay off a debt, all the creditor is required to do is update your credit report to show it was settled and may now have a zero balance. But it will still note late payments, charge offs and collections.

What I recommend people do is get the creditor to agree IN WRITING to delete any negative information from your history before you pay them a dime!

Remember, the main purpose of your paying the debt is to clear your credit history. Why in the world would you pay them and still end up with bad credit?

Answer 2

Even if they tell you they will take it off your credit, you can't take it for granted. Get a letter from them stating that was reported in error and your account was in good standing. I had a similar experience with a mortgage. After my divorce my ex kept the house. She moved out, without telling anyone. I found out when a letter from the insurance co. was forwarded to me saying they were canceling the insurance because the house was vacant for 6 months. I immediately called the mortgage co. and delivered a check for the past due balance, fines, lawn mowing, filing fees, and who knows what else they threw in. The bank manager removed it from their records, but it kept showing up on my credit report. All I had to do was produce a copy of the letter from the bank manager and it would come back off my credit report, or show it to a loan officer. A hassle, but the reality is that I was in the wrong (ignorance is not a defense) my name was on the mortgage, I should have verified the ex was making payments. but never thought she wouldn't. Now I leave nothing to chance.

Answer 3

i don't really know if you can. i have had to settle with a credit card co once and on my credit report it said "settled" which, is a sign that you had to get out of it and didn't pay it all. it not as bad as not paying it for a long time, or the stress of having it over your head and show that you had enough brains to get out of debt. as long you don't do it more then once. do all the cc companies at once. it goes away in 7 years and that does not happen with bankruptcy. hope this helped good luck.

Answer 4

Unless the rules have changed, even if they offer you a chance to settle, when its all said and done, it still shows up on your credit. Make sure you ask them precisely what will happen. I'm not guessing at this, I know.

Answer 5

Your best bet is to get it in writing that they will report the amount as being paid as full instead of listed as settled.

Answer 6

If you're ready to pay, you can sometimes get them to wipe it off your record in exchange, and they'll do it because they'd rather you just pay them. Call them and try. Nothing to lose.