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 Cards
Profile Image

Question By
Katius17

0 Contributions
0 People Helped
Should I settle my credit card debt for less, or pay it off slowly and diligently?
I have a credit card debt that's in collection and I'm currently paying $200 every month, which I don't mind. But if I'm offered a settlement for a lower percentage and I take it, will that hurt my credit score more than it already is? Is paying it off monthly helping my credit score at all?

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
3051 Contributions
2786 People Helped
Most Helpful Response

Helpful to 1 out of 1 people

It probably won't hurt it any more than it already has (really hard to say without studying your full credit report) but if you do pay a reduced amount it will show as "paid for less than full amount" on your credit report for 7 & 1/2 years from the date it is paid off, but it will be a closed collection account, which is slightly better than an open collection account.  Try to negotiate with the creditors to pay off the accounts, but only if they agree IN WRITING to remove the accounts from your credit report once they are paid.  If you continue to pay monthly and pay the full amount, the accounts will still be on your credit report for 7 & 1/2 years from date paid, but it will show as paid in full, which is slightly better.  Sorry there is no easy answer.  To better understand how your credit score is calculated, I suggest you visit www.myfico.com.   Best of luck!

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.