Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
Denlan

0 Contributions
0 People Helped
Have two accounts collections so I paid them off or settle with them
I have to open account and how bad will it hurt my score if I just settled with them instead of paying them off

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
935 Contributions
132 People Helped

The settlement will not have the effect on your credit report.  The damage was done when they reported the debt as being unpaid.  Once you settle or pay, they will (if that is in your agreement) that they will report them as paid and closed.   Then you will need to wait the applicable number of years (7) for them to be removed.   When they mark them as paid and closed, you will see an update date appear, although the original filing date will still be on file and this is the date that determines when they are removed.   If you have the means to pay the debt in full, start with a settlement.   Agree to an amount, date and that they will mark the account as paid.  Once this has been completed, ask how much more would you have to pay them for them just to delete the debt all together (This is called pay to delete.)   They "may" provide you with a different dollar amount to make that happen.  Get that in writing and whatever you do, make that payment fully as agreed.   Send it certified mail along with a copy of your agreement and ask that they fulfil their part of the arrangement.   Should they fail, you would have legal recourse for a refund and possible removal of the debt through the court.   

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.