If you pay off credit card debt, with a settlement is that looked at negatively?
Posted on | October 7, 2008 |
Best Way to Settle Your Credit Card Debt FAST:
Do It Yourself Debt Elimination Debt Settlement
Unless you can get them to agree in writing to report nothing other than the fact it is paid in full it normally will end up on your credit report with something like "paid - settled for amount less than owed." and R-9 coded to tell other lenders there was an amount you owed but they settled with you and had to charge off the rest.
The upside is you now owe them nothing. downside is don't expect your future lending needs to be well recieved for a while. if you are young and need to be borrowing money in the years to come you might think twice about settleing unless you are getting a substantial reduction in the amount owed.
I have recieved summons over a credit card debt. Is trying to negotiate a settlement my best option?
Comments
5 Responses to “If you pay off credit card debt, with a settlement is that looked at negatively?”
Leave a Reply
May 5th, 2006 @ 1:54 pm
if you are late…thats negative
but paying off…NEVER a negative…
ive paid off one card using another card…that had lower rates…it was GREAT all around…YES the creditors liked it…shows BRAINS
References :
May 5th, 2006 @ 1:58 pm
Any and all paid debt looks good on your credit. The creditors shouldn't even know where you got the money from, not that they care.
References :
May 5th, 2006 @ 2:12 pm
Unless you can get them to agree in writing to report nothing other than the fact it is paid in full it normally will end up on your credit report with something like "paid - settled for amount less than owed." and R-9 coded to tell other lenders there was an amount you owed but they settled with you and had to charge off the rest.
The upside is you now owe them nothing. downside is don't expect your future lending needs to be well recieved for a while. if you are young and need to be borrowing money in the years to come you might think twice about settleing unless you are getting a substantial reduction in the amount owed.
References :
http://www.MSN.com look for Liz Pullman Weston's information. her book Know Your Credit Score is easy to understand and very accurate / up to date.
May 5th, 2006 @ 6:23 pm
Is the question you're asking about a debt where you have settled with the lender and will pay less than the full amount? Or is it that you have received a lump sum of money and want to use that to pay off a credit card?
In the first case, yes, it will reflect negatively on your credit report because you didn't pay what was owed in full.
In the second case, no. As was already mentioned, the CC company doesn't know (or care) where the money comes from.
References :
May 7th, 2006 @ 11:23 am
Yes, but not as negatively as not paying anything at all.
References :