disdrawkcab
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If the bad debt is on your credit report, paying it off will be in your best interest.
It doesn't matter if it is a settlement payment or not, as long as it says it is paid.
Any bad debt that shows as unpaid is infinitely worse than bad debt that is paid. |
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EMT-13
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Don't do it! Figure out the exact date you were last current. Find your states statue of limations law. If it is out of SOL then tell them to cease and desist collection attempts. If it is on your credit reports then start removing all incorrect information from your credit reports and all negative accounts. Then have the creditor validate the debt. Can they prove the debt is yours, do they have your signature on a contract? Don't just cave in because someone says you owe them money. |
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crisbabe81
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Settlements will still reflect badly on your credit. They take the lower amount and stop collection attempts but they still have to write off that debt and report the unpaid balance as charged off/settlement. Before you pay it you can negotiate with them to take it off your credit report, and make sure to get it in writing first. Then at that point you can settle and not worry. Hope it works for you. |
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Carol (Yeah I said it!) G.
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I did it...DON'T DO IT. It will still appear as a bad debt...so in essense I bought my own Bad Debt......leave it alone! |
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no idea?????
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try to settle with company . will harm credit anyway , credit collectors , bad people who lie, threaten , and basically have no life , try physical threats . take them up on it , they run to police . total cowards went so far as to say my mother in law did not die |
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You ask, I answer
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it ruins it. |
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elephantlashes
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It will be shown as a "charge-off" on your credit report. This will lower your credit score a great deal. Avoid this if you intend to need a good credit score over the next 7 years. You will be refused credit by most companies if you charge off accounts. |
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who_u_lookin
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It shows on your credit as settled. It doesn't ruin it. If it's due to a dispute you can add a notation to your credit about the dispute. The most important thing to do is get the account closed. Open collections hurt you more than closed ones. |
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MacJedi
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If it's the party you originally owed, or their collection agency, it doesn't hurt your credit and could actually help it to pay it off. If the debt has been owed for several years, it has probably cleared from your credit report, and paying it off can actually hurt your credit rating. |
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Here4Travel Q & A
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OK, NONE OF THESE ANSWERS ARE CORRECT!!
First. Is the debt sold? If the debt is sold paying it off may not affect the original trade UNLESS you request a letter of release from the debt buyer and expedite things by sending this to the bureaus and asking for an expungment (rare) or an update (easy).
If the debt is purchased and you catch it in time (30-90 days afterward per FCRA) you would POSSIBLY have the ability to pay it off quickly before they put their own trade or collections section update on there.
If the debt is still with the bank (3rd party agency) or bought AND the buyer puts a trade on your cbr you want to make sure its paid.. and the difference between settled in full and "settled for less than the full amount" is a few points.. but either way you want the derogatory showing paid.
If you pay the debt buyer and hound them to update the trade as paid.. you then still have to contend with the original creditor trade. This is a bother, since you now have twice the mess to clean up.
Real credit sticklers pay the stuff off FAST and IN FULL. ALWAYS obtain a 'letter of release' 14 days after paying. |
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