Does anyone know if a "settled" account with a zero balance is reported in the negative section of the CR? If so, for how long?
If it was charged-off and then you settled, it is definitely still reported in the negative stuff. I paid a charge-off (before I found this board) and it did not help my score and it is still reported as a negative... just as bad as it was before it was paid.
I think this will show as a negative because of the late payment status. My wife has 30 day lates from 1999 that show up as a negative.
Okay, so both the "settle" and the 150-day late would show as negatives...for 7 years presumably. ugh! But, better than a judgement. Wonder if after 24 months, it doesn't hurt as much to the CR...
No, credit card companies set their own standards. Many will accept you with two years of clean payment history, there are others who will deny you for having a chargeoff 6.5 years ago. It all depends on the issuer. The 2 year clean payment history reflects most mortages and some loans. Dani
You are right. I just completed my first "wave" of settlements on derogs and I was disappointed to see the CR still reporting them as derogs. For manual reviews, however, it seems to help if the reviewer sees zero balances and the "settled" on the CR. In fact, I believe that's the only way I would have been approved for a $2K loan from Wells Fargo Acceptance for my girlfriend's engagement ring. They did mention that they recognized my disciplined efforts to repair my credit although my FICO is still under 600. It's a start I guess.
