I have an open account with GE CareCredit. It was

Date: Tue, 04/26/2011 - 10:51

Submitted by blog123pdl
on Tue, 04/26/2011 - 10:51

Posts: 9 Credits: [Donate]

Total Replies: 1

I have an open account with GE CareCredit. It was maxed out at $4K. Was also interest free for 12 months, however, I failed to pay it off and the interest in arrears kicked in. GE CC has offered to settle the current balance of approx $6K for $2K. What effect will this have on my credit report and would it be better for me to continue to make payments in an attempt to pay it all off (I am currently on a 9 month hardship program paying 1% of the balance at 10% APR).

There are pros and cons. How much do you care about your credit

There are pros and cons. How much do you care about your credit score? Generally a settlement will show on your credit report as "settled in full" or "paid in full for less than the balance due." Both will lower your score BUT, you'll also save yourself $4000 plus interest. The hardship plan will generally close your account, reduce the interest and you'll have no late fees, etc., but also shows you're making on time payments. I think you have to choose what's most important to you. If your credit is already not great or only fair, I'd opt for settling and saving yourself the money. Also, see if you can negotiate with them to remove the tradeline from your credit report as part of your settlement agreement...never hurts to ask.

lrhall41

Submitted by OhioGal1 on Wed, 04/27/2011 - 06:58

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