2006-12-19 14:28:04 · 8 answers · asked by Utopia 4 in Business & Finance ➔ Credit
A settlement is still a negative, because you are paying less than you owe. It is still, however, better than not paying at all. The main factor is that the debt is resolved and the account is closed.
Just be glad that the creditor no longer has rights to collection or to attempt a judgment.
2006-12-19 14:38:20 · answer #1 · answered by Anonymous · 0⤊ 0⤋
A settlement is better than a bad debt or a bankruptcy, but it's not as good as a good debt. It depends on how old it is as to how much impact it has on your credit score. If you've gotten to the point that a settlement has occurred, you're credit score is pretty busted up already.
The stupid thing about FICO scores are that paying off a credit card and closing the account will hurt your credit.
2006-12-19 15:13:54 · answer #2 · answered by KC 4 · 1⤊ 0⤋
Whether you paid the full amount or a settlement doesnt really matter to future creditors. It looks bad either way, but the debt will show resolved. How will it affect your FICO score? Depends on a lot of factors. I contend that FICO scores are determined by Voodoo.
2006-12-19 14:41:58 · answer #3 · answered by Martin Chemnitz 5 · 0⤊ 0⤋
If you accept an offer make sure you request in writing that the derogatory marks be removed from your credit report and that they just put balance paid on the credit report. You can ask for these things and you better get it in writing before you pay them. Your creditors have the power to place any verbiage they want on your credit report. it is up to you to make sure they do. 35% of your fico score is payment history.
Kourtnie Donihoo
The EDA Group
"Helping people become debt free"
1 866 605.0753
www.enhanceddebt.com
2006-12-19 20:59:57 · answer #4 · answered by Kourtnie D 4 · 0⤊ 0⤋
First important thing that you have to understand is your creditors will arrange for minimum monthly payment plan but their interest rates will be very high.
The best solution is to join a debt settlement company who will negotiate to reduce your principal debt for 30% to 60% with NO or LESS interest rates.
It will have negative impact for sure..but it is far more advisable than filing bankruptcy
good luck
check this website for help
http://www.debtfreeafterall.com
2006-12-21 05:23:59 · answer #5 · answered by Hima K 2 · 0⤊ 0⤋
In my information, the credit is the score each and each guy or woman credit bureau grants. The FICO is the entire credit record, which incorporate debt to earnings ratio, etc. The FICO is the substantial one. save doing what you're doing and it would capture up, yet nonetheless request your comments to verify for errors.
2016-10-15 06:58:46 · answer #6 · answered by juart 4 · 0⤊ 0⤋
I've done this and it looks like a charge off on your credit which is still negative.
2006-12-19 14:38:05 · answer #7 · answered by Anonymous · 0⤊ 0⤋
credit info would still be a negative towards your credit score
2006-12-19 14:35:35 · answer #8 · answered by Mopar Muscle Gal 7 · 0⤊ 0⤋