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Posted in Paying Your Bills
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Question By
tfnyrogers

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I have a choice to do a settlement for $704 or pay in full for $937. Will a settlement hurt me?
When I first bought the item it was actually $700 & now I have the chance just to pay that amount. I'm not sure if having a settlement status will effect my credit score/report negatively or if I should just bite the bullet & do the paid in full for $937? Does anyone have any insight?

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It depends on how they will report it to the credit bureaus.  You may want to ask.

If the settlement for $704 ends up being reported as "Paid Settlement" or some variant, then yea, it can hurt you for ~7 years.

If the "Paid in Full" of $937 is truly reported as a PIF account, then I would opt for that because 7 years is a long time to carry a quasi-derog.

You should ask exactly how it will be reported, and get it in writing.  Get *everything* in writing and save it.

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