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movingup2014

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Settled for amount less than owed - if I pay this off how much will my score improve?
Hi All!
I had an auto loan through CarMax and it shows on my report as "settled for amount less than owed" I paid $100 on it last night and I owe $247. How much do you think my credit score will increase once it is paid in full and is reported to the credit bureaus as such?

I am hoping to get a car loan so I know that its really important that this is reflected positively on my credit.

My score was 572 a month ago. I paid one of my cards down ($400 limit / $381 balance) to a $20 balance & my score has increased 24 points according to Transunion.

Thank you all in advance for sharing your input & experience.

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Top Contributor
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negotiate

Part of settling the Carmax loan should have been a final payment with a stipulation that the negitive remark be removed from your report. You may still be able to get it taken off. try contacting Carmax when your ready to make that final payment. see if you can get a "Compationate Soul" to work with you.  If the "Settled for less" statement stays of your CR you may have a difficult time getting a new loan relativley soon.  Paying it off should have a positive effect on your report with in 30 days.  But it will also drop you available credit. so watch your utilization. 

Good Luck!

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