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Should I take a settlement offer from collections or pay in full?

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To be honest I don't really understand how credit fully works. I had a family member take out multiple credit cards in my name when I turned 18, I didn't know about them for years until I applied for my first card, was declined and checked my credit score for the first time. I have since paid all of them off in full aside from one Capital one credit card. My wife and I are now trying to get a mortgage and this is holding my credit score down to about 580 still so I'd like to take care of it. The credit card apparently had a limit of $2500 and was maxed out. It went to a collection agency who is now requesting $6000 with the interest accrued. It shows as $6000 on my Equifax report. Do I have to pay this in full to have it removed or can I take a settlement offer for the original 2500 owing. Does that still improve my credit or will it look worse if I don't pay the interest? Please advice.




PLEASE ADVICE..

Sub: #1 posted on Fri, 01/28/2022 - 16:13

Fred Ramon Fred Ramon

(Posts: 6 | Credits: )

Hi!
Welcome to the forums!!!

You are in a big trouble. You need to pull up your credit score and that too fast. See, even if you pay the full amount, the account will be there on your credit report for 7 years. The account status will be updated as paid in full. Your credit score won't go up instantly. However, if your credit utilization ratio goes down, that may help to increase your credit score. You have to keep on adding positive information to your credit report so increase your credit score.

You can also negotiate for a settlement. That would help you save money on your debt. You can ask this letter and request creditors/CA to remove your account from the credit report.
ht tps://community.debtcc.com/credit-repair/pay-for-delete.html


Sub: #2 posted on Tue, 02/01/2022 - 02:17

David Martin David Martin

(Posts: 394 | Credits: )

What’s the best way to dispute a very old missed payment or something that has gone to collections?
I thought my credit score is way too low for someone with my income level. I am good about paying everything in full but things like college term bills / sorority dues hit my collections when I was way younger and my credit score was still trash, with a very low credit limit on each of my 3 cards. I’ve done everything to get it up but it’s still not enough. I met skilled set of pro's in credit building from reddit and sent them a mail to help me, their official mail is synod @ tutanota . com, we are not supposed to share information like this on here but I believe since it helped me then why not help others too? that's what any decent human being would do. There are a lot of people struggling with credit and sometimes no matter how many rules you follow you just can't get where you want it to be, you need that extra piece of knowledge and help and there's where synod comes in. It was pretty amazing when they started pointing out my errors and where I could do better and now I am hanging in the ranges of 700's all the way from 610. And debt consolidations care has been tremendous help too because the habit of saving has prompted me to clear my debts on time and I'm grateful for that.

Sub: #3 posted on Tue, 02/01/2022 - 15:21

Fred Ramon Fred Ramon

(Posts: 6 | Credits: )

That's great!!! Congratulations!!!!
What’s the best way to dispute a very old missed payment or something that has gone to collections?

See, if this is a valid debt, you can't do anything about it. It will stay on your credit report for 7 years and 180 days. Yes, if you pay the full amount, the account status will be updated as "paid in full."

Sub: #4 posted on Wed, 02/02/2022 - 21:16

David Martin David Martin

(Posts: 394 | Credits: )


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