I have several credit card accounts that are due to charge-off within the next month. I have tried to negotiate settlements with them but none have agreed to settle for less than 50% (and won't even consider deleting the tradeline or listing the account as "Paid"). Paid-Settled is the best that they are willing to do. Received a settlement offer last night in the mail for 25% and listing of Paid-Settled. What I need to decide is whether it is preferable to settle this account just to be through with one card even though the account will be listed as "Paid-Settled" or to let it charge-off. What I "think" I have read from this board is that a "Paid-Settled" is really not any better than "Unpaid Charge-off" on my credit report. Comments or suggestions please on this issue and any advice.
Depends on what you want to do - though 50% is pretty good, in my opinion. Your choices as I see it: 1. You could let them charge off and see what you can do later to clean up your credit report. If you do this, you will most likely have collections as well as charged off accounts on your credit report, and your score will suffer. 2. You could pay the settlements and take the listings as "Settled". Your score will suffer, but you have the chance to rebuild your credit later. 3. You could try and ask them again to change the listing - though you may not get anywhere. Have you tried the old "well, I only have so much money and I'm going to pay the accounts that agree to change my listing to 'Paid as Agreed'"? Best of all worlds, if you can make it happen. You may save hassle in the long run by settling now and beginning immediately to building up some positive credit for the long haul.
Don't pay with out deletion!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
That's good advice too, Mr. Brown. What the person has to do is just look at all the possible alternatives, get the greatest variety of opinions and then do whatever he thinks is best for him.
OK, here's two scenarios. 1) You leave it unpaid and keep fighting for deletion, try validation, or the credit bureaus process. All three tend to work according to company. 2) If you plan on a mortgage or car loan soon, strongly consider paying it. My dad had to pay a $10 collection (no joke) before a "bad credit" auto dealer would loan him a car.
