question about settlement and charge off
Date: Mon, 02/05/2007 - 16:20
I'm sure this post will display my ignorance but help me out.
I don't have a full understanding of charge off and how it relates to settlement.
If your creditor accepts a settlement offer, will it show up on your credit report as a charge off? In every case? In some cases?
Thanks!
Creditors post those accounts as "Charged off" that are 180 days
Creditors post those accounts as "Charged off" that are 180 days past the due date. When this happens, your credit report is tarnished because of this negative entry. You get a R9 rating for this reporting. This is the time when debt collectors are hired for the collections and they ruin your credit potential completely.
In case to avoid all this from happening, you can either negotiate with a creditor to remove the negative remark from your file. Show your payments in full and make them accept your proposal.
In case, it doesn't work, draft a settlement proposal. This will also give R9 status but will show up that the account was paid. This will show your credit slightly better to the future lenders.
