I am making payments to a collection agency on an account I had with MBNA. I owe them 12,000. They are willing to settle the account for $6,000. I was told that if I do this, the credit report would state written off. however, if I pay it in full, it will state settled in full. my credit report already says written off, because I did not made payments on the account for a while. I started making payments and it still says written off. In the last 6 months I have been able to buy a house and a 2005 vehicle. my question is. how bad is the term written off on the credit report? obviously not too bad when I was approved the above. my question is: is it worth for me to settle this account in full, or just pay half and keep the written off on the credit report? I hope I explained myself. thanks,
I believe I was told by a credit counceling service that a bad debt falls off after three years, but if you pay it off, it stays there as Paid in full for 7 years. DiannaWV
What account says, "written off"? The MBNA? When was the DOLA on that account? If you can make a lump sum payment, you could make deletion of the MBNA notation *and* the CA part of any negotiated settlement. At 7 years, the account will fall off so it may be worth your while to just keep to the status quo, pay the $6,000 as agreed, and wait for it be obsolete.
