2007-07-31 11:00:31 · 5 answers · asked by Amiyah Mom born 7/12/09 2 in Business & Finance ➔ Credit
It looks a lot better than an unpaid charge off.
Depending on the amount forgiven, you might get a 1099 (I think that's the form) and have to report the amount as income on your tax return.
2007-07-31 11:04:24 · answer #1 · answered by bdancer222 7 · 1⤊ 1⤋
A delinquent account looks bad. Once it is settled, the account will appear as closed. It won't provide details of how it was closed. though I believe the lateness of the settlement remains in the record for a few years. /not 100% sure on all this, but positive that you are better off settling than leaving it open while you struggle to pay.
something you should probably read:
http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.htm
2007-07-31 18:09:00 · answer #2 · answered by Dr. Souldogs 4 · 0⤊ 0⤋
YES....It will show that the debt was settled for less than the balance owed.
I'm trying to buy a house and about a year ago I had a repo on a van, and I owed 1754.00 and the settled for 854.00 shows on my credit as settled for less than balanced owed, the good thing is is now you can call the credit bureau and ask they remove it from your report and that it has been closed. Doesn't always work but it has a few times for me
2007-07-31 18:38:02 · answer #3 · answered by anikkie 2 · 0⤊ 0⤋
Not as bad as not paying the settlement. Your credit score will drop either way, but it can drop lower if you don't pay.
2007-07-31 18:08:39 · answer #4 · answered by Anonymous · 0⤊ 0⤋
it is much better than simply defaulting on the payments altogether.
2007-07-31 18:08:46 · answer #5 · answered by rcsanandreas 5 · 0⤊ 0⤋