My question is somewhat simple. I have 2 old bad credit card accounts both equaling 1900+ each. I have cleaned up most of my credit and now have 5 credit cards with 100% paid as agreed never any late payments. So my credit scores have come up in fact my TU score is a 731. With that being said should I settle these 2 accounts? Or being that they are older and will be falling off next yr just leave them alone. I could pay them in full but they are offering me a settlement for 475 on one and 445 on the other. If I decide to settle will that make my points go up at all or will they go down? If i decide to pay in full will they go up more than settled in full? If so how much of a difference is it? REMEMBER THE KEY WORDS HERE. I have fixed my credit already for the most part. SO with my new good credit should i leave it alone and let it fall off on its own or settle or pay it off. The date of last delequuency was early 2007 Thanks
Paying off a charge-off doesn't increase your score; including settlements. Also, the age of the accounts could be helping your scores more than the derogatory information in the accounts. Also keep in mind that if the amount being forgiven by one of the companies is more than $599.99, you will most likely be 1099ed for the balance and have to declare that on your income tax as income. With the amounts that you've given, there is a chance that that could apply, so you'd want to consider income tax ramifications to ensure that you don't owe Uncle Sam on the difference. If they're at least 6 years old, there is always a chance a simple dispute (other than not mine, if you can avoid it) could help it to fall off the cliff a little bit earlier.
