Hi, I'm new to this board and need some help regarding my cc situation. I have already set up a plan of action to pay off my cc in order of highest interest to lowest...but today another problem arose. I have a cc that has recently gone to collections. I called the collections compnay today to determine what my available options were. I owe $414, but they are willing to settle the account with me for $290. When I asked how this would affect my credit they said that it would not affect it badly (other than the fact that it was in collections to start with). It will appear on credit report as "settled in full"... I need to know if I should take this offer or not. I cannot afford to pay th 414 upfront this month, and would be stretching it to pay the 290 but think I should take the offer, just to prevent more interest and fees from accruing and the debt being in collections for more than one month... Has anyone had experience with this? Can you tell me how it will affect my credit? Should I accept the offer? Are there other options? Are there any other important steps I need to take to address this issue? Thank you in advance!
Settled in full is not going to be any better score wise than the open collection. If you are looking to get a mortgage however, most require all collections be paid before closing, or the balance be placed into escrow and be paid at closing. Gib
1*When I asked how this would affect my credit they said that it would not affect it badly 2*(other than the fact that it was in collections to start with). 3*It will appear on credit report as "settled in full"... 4*I need to know if I should take this offer or not. I cannot afford to pay th 414 upfront this month, and 5*would be stretching it to pay the 290 but think I should take the offer, 6* to prevent more interest and fees from accruing and 7*to prevent the debt from being in collections for more than one month... Has anyone had experience with this? 8*Can you tell me how it will affect my credit? 9*Should I accept the offer? 10*Are there other options? Ticobanini ================= 1*Yeah Right! 2*That's plenty badly enough. 3*Forgot to tell you that's worse than un paid didn't they? 4*Just like you should go over Niagara Falls in a barrel 5*Me thinks you're thinker's stuck. 6*Ya mean to create more interest along with jacked insurance because the collection shows on your reports. 7*Paid or not it won't be for one month-try 7 years. 8*It will practically guarantee a a 7 year ding on your credit. 9*see No. 4. 10* find out what your rights are. Learn all you can about the con job known as credit reporting and scoring. Suggested reading: The intro threads found at the top of the page.
