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Credit Card Settlements

Date: Thu, 07/26/2007 - 11:29

Submitted by shughes0993
on Thu, 07/26/2007 - 11:29

Posts: 40 Credits: [Donate]

Total Replies: 3


I am looking for some advice. I currently have three credit cards that are way over the limit. I pay every month the minimum balance but i am not getting anywhere. I recently contacted all three companies and asked them for a settlement to close out the accounts. All companies agreed, now i have some extra money coming in where i can pay all the settlements off. What i am wondering is how bad is this going to affect my credit score, not that its perfect anyway but im trying to get out of debt to get my credit straight. Now i do plan on keeping an extra credit card that i have so i can bring my credit score up. Do you think this is a good idea, I dont want to consolidate the cards i just want them done and out of they way. So what do you guys think?


It depends on how your creditors are going to report your file to the bureaus. Your credit ratings will be hurt if they mark the account as "Settled". You can negotiate with them for a fair reporting like "Paid" or "Paid as Agreed".

Make sure that you get the settlement offer in writing. This is an important proof if any dispute arises later. Also, ask them to put in writing about how they will be reporting to the bureaus after you have paid off.


lrhall41

Submitted by onelamb on Thu, 07/26/2007 - 11:51

( Posts: 433 | Credits: )


I would also think if these were settled, then it would show negative on your report but your debt to income ratio would be much better and in a year or so of paying your other credit card or bills that report to the credit bureaus should help as well. I am in a similar situation where I want to settle my accounts so right now my credit score is pretty bad, but I'm willing to have it that way so I can just get out from all these CC's.

Good luck


lrhall41

Submitted by Justina on Thu, 07/26/2007 - 12:08

( Posts: 138 | Credits: )


Contact senators Levin, Dodd and Coleman. They are trying to stop Legal Loan sharking by the credit card companies. They are our last hope!


lrhall41

Submitted by anonymous on Mon, 08/06/2007 - 11:51

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