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Tineetee03

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Settled a debt, creditor said it will show as paid in full. How will this affect my credit?
Hello,
I have started to make payments on some of my collection debts. So far I have settled one account and the creditor said that it will show as paid in full on my credit report. I have read conflicting articles saying that I should have paid it in full because it will negatively affect my credit score. Will it still have the same affect if it shows that it was paid in full?

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Top Contributor
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Here's the thing, even if it is shown as "paid in full" it does little to help your credit profile. A collection is a collection whether it be unpaid, paid in full or settled for less, all scored the same, but the account does look better under manual review of your credit and paying collections prevents you from being sued or hassled by debt collectors. What you need to research is "pay for delete agreements" and "goodwill letters".

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