Paying of a Credit account...?

Question

If you have multiple accoutns on your credit which are 3-4 years old, can you call and offer a settlement amount, or do you just ask for a settlement amount. For example, if I have an account that is $244, but is 4 years old..can I cll and offer $150? Anyone familiar with that process? I would rather try to clear my credit myself and not use any companies

Answer 1

Settling would be a better option than defaulting on your payment. However, if the amount is not significant, you may want to pay them in full. The reason? when you settle for less, it will show in your credit report as "Settled for less than full amount," which can negatively affect your credit history. But if the amount you are settling is a large amount and you do not have the cash, then you have no choice but to settle for less.

Answer 2

You can certainly make them an offer. Do everything in writing and do not take their word for anything. Always pay by check or money order - do not give them your bank information or your credit card information. Only agree to things that are in writing. I doubt they will negotiate much on small balance items like the one you mention but maybe they will. Also, require them to remove any negative items on your credit report as part of the settlement. If not they will update the report with something like "Account settled for less than full amount".

Also keep in mind that this debt is 4 years old and that it will most likely drop off your credit report in another 3 years, if you do nothing. If you pay the account the timer is started fresh and the paid off account could remain on your report for seven years after you pay it off. This is why it is very important to get the account removed from your credit as part of the settlement offer.

Good Luck

Answer 3

It doesn't hurt to ask. I've bartered down a few of my old accounts when I was cleaning up my credit report. It shows as being paid in settlement. If they don't want 150, let the bidding begin. Most will go for it just to close the account.

Answer 4

be careful. if in fact the accounts are 4 years old, then you are only 3 years away from them falling off your credit report. If you make contact, the 7 years will start again from the last reported transaction. Your payment could cause the clock to start over. always good to pay things off, but maybe not if they are going to set you back 4 years. check your credit report for the last reported date for those creditors so you know where you stand with regards to time.

Answer 5

You can try it but it will not come off your credit record, unless you can make that part of the deal. It will remain on your record until 7 years after the original payment was missed.