I have a low credit score. If I settle on my credit cards and pay the required settlement amount, will my credit score go up? Thanks!
2007-04-10 11:20:20 · 5 answers · asked by robbie d 1 in Business & Finance ➔ Credit
If you are dealing with a collection agency, demand deletion upon payment.
If you are dealing with the original creditor, you can request that they show a zero balance and paid as agreed.
Either way, if you do a settlement be sure to have it in writing that the amount you pay is considered "payment in full" or you may end up having to pay the remainder at some point.
Do "everything" in writing !! Create a papertrail.
A paid negative is still a negative. If it shows on your reports that as a paid or settled negative, it won't help your scores.
It will also update the account to make it "appear" newer than it actually is, which will hurt your scores.
2007-04-10 11:28:51 · answer #1 · answered by echo 7 · 1⤊ 0⤋
Anytime accounts are paid weather it's in full or by settlement, your score will go up.
It will reflect on your credit bureau as "settled for less than full amount". But a settled account is better than a delinquent one.
2007-04-10 18:26:39 · answer #2 · answered by ? 7 · 0⤊ 0⤋
Credit card is a facility to be used when you have little cash in your pocket (specially at the end of the month) or during emergency time. But now a days most of credit cardholders are using their credit card to make payment for routine things like food, grocery, clothing, utility billing and automatic services. This, in the long run allows individual to rack up an enormous amount of credit card debt.
Credit card debt is one of the worst forms of credits because it bears high interest rate. If you have decided to pay credit card debt, you are really making best financial decision of your life and we are ready to help you eliminate credit card debt.
After credit card debt consolidation lot of people are interested in debt credit cards settlements as an option to eliminate credit card debt. read more about credit card settlement at: http://www.credit-card-gallery.com/article/189,Debt_Credit_Cards_Settlements_What_are_Your_Options
2007-04-11 06:54:30 · answer #3 · answered by Anonymous · 0⤊ 1⤋
If your cards are presently in delinquency, then payment will definitely help. But, it takes awhile for the score to reflect the good behavior.
2007-04-10 18:59:14 · answer #4 · answered by Still reading 6 · 0⤊ 0⤋
yes over time it will go up more when they are removed from your credit report..
2007-04-10 18:25:52 · answer #5 · answered by shorty21 5 · 0⤊ 0⤋