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Shaneacpta

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Does it affect my credit score if I settle with charge-offs versus paying the full amount?

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With Fico scoring systems, both would be scored the same. The only negative effect of settling is if your report is looked at under manual review by a lender. Remember when dealing with old negative debt, the only sure way of getting a score boost is to do a "pay for delete" meaning that you get the creditor/collector to agree to remove the account from your reports in exchange for you paying it. Some creditors/collectors will do "pay for deletes" but many will not, always the first thing you try though. Either way, even paying it without a delete should help if the amount listed is being factored into your utilization and if the account is currently updating monthly. If the account has not updated in a long time, then paying it will cause and update and the update will cause a score loss, but after some time your score will start to come back up. If you are not familiar with how to deal with paying old debts, I highly suggest that you do a week or two of reading on the subject before you proceed as being somewhat educated on the subject can save you some costly mistakes and be sure to do research on "pay for delete agreements"

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