Paying settlement/ Credit Report ?

[shellbe91671]

What is the name of your state? Georgia

I received a great settlement offer of 60% off debt and wish to pay the amount to settle the debt. The letter states that upon receipt and clearance of the above payment this account will be considered settled.

My question is : Does that mean they will report a positive statement to my credit report or will my report still reflect a negative effect toward the future.

Trying to do what is best for my future!

 

[anon29072]

I believe that it will eventually show as being paid on your credit report, but it will still have a bad score. I think you can sometimes negotiate with the CA to get the item removed, but good luck in doing so. Once they get your money, they're not going to care about anything else. Also, if they say that they will remove it, then get it in writing from them or you'll be SOL. You're still going to have the deliquent reporting from the original creditor and there is nothing that you can do about that until the 7 year reporting period is up.

 

[JETX]

"Does that mean they will report a positive statement to my credit report or will my report still reflect a negative effect toward the future."
*** No. Any agreement as to credit reporting would be completely separate from a payment settlement.

- Is this agreement approved by the debt owner?? If not, then the debt owner might be able (depends on EXACT agreement) to come back and demand the unpaid balance. Make sure that the owner is also agreeing to the settlement.

- Is the agreement signed by a person authorized by the

- When 'negotiating' a settlement with a creditor, try to include a credit comment of 'paid in full as agreed' or similar, or no higher than an I-3 or R-3.

 

[HomeGuru]

- When 'negotiating' a settlement with a creditor, try to include a credit comment of 'paid in full as agreed' or similar, or no higher than an I-3 or R-3.

**A: what about an R2D2?

 

[JETX]

The 'R2D2' is the old codes and isn't used anymore.
The 'I-3' and the improved 'R-3' superceded the previous R2D2, model 4.

 

[Ladynred]

The bottom line here is that a notation of 'settled for less than full" is still a NEGATIVE that will kill your scores.

AS JetX stated, you want something like 'paid as agreed' or even just 'paid', but you do NOT want 'paid collection' or 'settled...'