If i settle accounts in collection for a lesser amount can it still raise my score?

Answer 1

Not necessarily. It will show on your report as settled for less than the full amount. Either way, it'll be on your report for a few years (I think seven). Your biggest problem is probably not how much it will affect your score, but certain lenders will not lend any money to you if they are not paid. If you settle, they cannot come after you anymore, so it really solves that problem. I hope that helps!

Answer 2

If you negotiate with a lender to settle an account for a lesser amount also negotiate with them to remove account from your credit report. In doing that it will improve your score, in just paying a delinquent account will not improve your score it just shows a bad debt satisfied.

Answer 3

In exchange for part of the payment, have the collector agree to removes all negative tradeline from all your credit report pertaining to the debt that is being settle.
Those negative tradeline being remove from your credit report should raise your score. (It could lower it, if you had this account for a long time.)

Get the settlement in writing.

One other thing...
Next year you may receive a 1099-C tax form from them in the amount that you didn't pay cause of the settlement.
In other words, you will have to pay taxes on the amount that was "forgiven" in the settlement.