settlement vs payoff on c card..credit score be reflected?
Date: Wed, 11/19/2008 - 17:11
Settle or pay in full
Once you settle an accout it should show on your credit report as paid in full for a lessor amount or something along those lines. It will have a zero balance which is what you want. Since you are already behind it will not affect your credit score. Also be careful when you pull your credit since each time it is pulled can cost you points...If it was me I would say save the money...
paid or settled
Your credit report will reflect Paid and/or settled for less. You can negotiate with them to REMOVE the credit history from your credit report.
They will do this for an attorney. I don't know if they will do it for you without an attorney representing you.
Next. collection agencies have dramatically increased their 1099 reporting to the IRS.
The difference between what they say you owe and what you settle for will be sent to the IRS as a 1099. Meaning, you will be subject to a tax liability for the unpaid portion.
take NOTHING as part of the agreement unless it is in writing. If you don't get it in writing they didn't agree to it. Plain and simple - they lie. Whatever they say they will do - get it in writing.