It is a bad thing to settle a bill on your credit report, or should you pay the whole amount?

Answer 1

If you must settle, but if you don't have to do not do it here's why... If you owe a total of 1000 and pay a settlement for 500, thats good right, no because what they do not tell you is that there are specialized collection companies that buy the remaining debt owed on that card and they will come after you for the 500 that is left. I know cause it happened to me, its called CDO (Collaterized Debt Obligation) These companies buy off the loans from various credit card companies and they also buy the right to go after that amount you didn't settle for. Just make sure if you do settle you get the paper work confirming that they are satisfied with your payment, you will need this to fight the ABC credit agency that may come after the rest of the money. Hope this helps.

Answer 2

The over all goal is to get the negative item off of your report so your score rises. If the debt is a mistake, you can fight it, but it is not very easy and will take a bit of work on your part to contact the parties involved and get your results in writing. Then you send those results to the credit report agancies and they will remover the offending item. If the debt is your responsibility, you have two options favorable to your already bruised credit report. Pay the debt off in full is the cleanest way to go. If you can negotiate a lower payoff figure, do so, but make sure you have an agreement in writing that the creditor will remove the negative report on your credit. Remember, it takes about two months for those changes to appear on your report. The quicker you get that debt posted as satisfied instead of past due the better your credit will be.

Answer 3

It will show as some variety of "settled for less than full balance" on your credit report once you've made the arrangements, but all the same, after 45 days of the line being satisfied, the creditor is required by law to remove all reporting lines by request. Either mail, call, or contact each creditor via internet to have these things resolved. Experian provides free reports once yearly, and you can look at those reporting on the last few pages to get their firm information.

Hope this helps!

Answer 4

The credit file will reflect settled for less than full amount owed. But that after 1 year is not considered a real bad thing at all.

Answer 5

When you settle, the amount you didn't pay is considered income and you will be taxed for that income.
Also, it will show up as settled and not paid as agreed.
If you can continue to make your payments on time that would be the better way to go.

Answer 6

properly your massive mistake grow to be letting it flow to collections. Now the wear and tear and tear has already been finished because collections will ensue on your credit record no matter if you pay the invoice or not. you may continuously artwork out a value plan and this can were finished with the well being middle. you've 2 possibilities, you may purely enable it flow and stay with the series and non price, or you may attempt to artwork out a value plan with the series employer. Your credit record will be damaged no count number what. you opt on to stay actual cutting-edge on all of your different charges and with slightly of success over the years this can fade away.

Answer 7

if they offer a settlement, take it.
seriously.. why wouldn't you. they are just giving you the option to pay some of it and they would close it.

just make sure you get everything, and i mean everything in writing.

the bad debt will still show on your credit report for 7 yrs, but at least it's paid.

Answer 8

Either way, both will show on your report