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 Posted: Wed Aug 22, 2007 1:12 pm Subject: credit card settlement |
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Hey I was set to settle a credit card , when my husband read the "arrangement", as they called it and he thought we needed legal advice. Has anyone settled a card , and do you know what it does to your credit score when you settle. Are you then only offered subprime loans in the future? I am very
stressed out about this. They are knocking about
3ooo off the total, however I am not sure I want
my credit destroyed over this small amount of
savings. Thanks for any help.
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kel
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Debtcc Points: 100
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| Posted: Wed Aug 22, 2007 2:00 pm Subject: |
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I am in the process of trying to settle a card, a few things to keep in mind - yes this does affect your credit, you may be able to try and get them to report this as paid in full which will help, but I'm assuming if the CC is offering you a settlement than this account is already in default and this has already affected your credit score. You can start rebuilding your credit once you settle. Also keep in mind if you do settle, anything over $600 might be taxable, (I just got some more information on this from another topic) So this most likely will need to be added to your income.
Future loans usually take into account your entire credit score, and if this account is in default your credit is already suffering and you will have to rebuild your credit either way.
Hope this helps.
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jb2007
Joined: 01 May 2007
Posts: 146
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| Posted: Sun Aug 26, 2007 1:03 pm Subject: |
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I just settled 2 accounts on my credit report one is a credit card, and yes it does report "settled in full for less amount owed", and i settled on an old wachovia and it reports the same way as well. I got my letter reporting that the account is paid, my credit is already shot to hell so it really didnt do too much more damage. I am trying to pay off all of my accounts so i can start re building my credit. I have one credit card that i am making current payments on and i am keeping that open so it can continue to report as current until i get my credit up to par.
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shughes0993
Joined: 14 Jun 2007
Posts: 39
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| Posted: Sun Aug 26, 2007 1:22 pm Subject: |
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You are right it will report as "settled in full for less amount owed". I would maybe suggest to the credit company that they make a notation just the account was paid in full...they might, it's worth a try.
ladybug
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ladybug
Joined: 29 May 2007
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| Posted: Sun Aug 26, 2007 10:05 pm Subject: |
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The entries are negotiable...a slightly higher payment may sweeten the deal for them (PIF or deleted instead of SIF)
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Morningstar
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