My fiance has a Bank of America credit card. There's a $7500 limit on the card but after finance charges, late fees etc, the debt is now at $8900. She went 120 days late on payments and was called by Card Services, they say they're a collection division of Bank of America. They offered her settlement in the amount of $4500 rather than the $8900 on the card. She thinks its a deal because half the debt is "vanishing". We checked her credit report and she isn't listed as being in collections just extremely late on pay. I argued with her saying that the settlement is bad and that it will affect her credit for years to come but she thinks its a good plan. We're planning on looking for a house in a year and a half and i don't want this to affect our buying power. So how does settlement effect her credit? Does paying off the full amount rather than settling look better on your credit report even though the account is past due? What should we do, who's right here?
2007-03-28
05:28:46
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4 answers
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asked by
Greg O
3
in
Business & Finance
➔ Credit