Posted on
May 26, 2009
at
8:10 am
I am still trying to learn more about debt settlement as an alternative to bankruptcy. Thank you for your responses last night in regards to debt settlement companies and the fees they charge!!
Posted on
May 26, 2009
at
8:18 am
A "settled" credit card account would remain on an individual's credit report for 7 years. Considering that most people who are trying to settle their debts are trying to avoid filing bankruptcy, that isn't too bad. Chapter 13 stays on your credit report for 7 years also, while Chapter 7 stays on your credit report for longer- 10 years. Since a bankruptcy filing is perhaps the most negative mark to have on your credit report (with the exception perhaps of a foreclosure or unsatisfied judgment), having even a few settled credit card accounts on your credit report is not the end of the world. What is important is that once you have settled your accounts you don't get into that situation again!
Posted on
May 26, 2009
at
6:39 pm
ok what if i am on a payment plan with a debt collector and not the original creditor? are they still reporting that on my credit report? when i finishing paying the debt off in full, how long would something like that stay on my credit report for?
Posted on
May 26, 2009
at
11:24 pm
As far as I know the debt collector and the creditor
share the same system. Meaning, when you have paid your debt in full with the debt collector, and it was recorded in the system as settled, the creditor's records would also be updated. Every month the creditors report their accounts to the major credit bureaus, but do not rely on their accuracy. It is always good to check and double check by asking for a copy of your credit report--every year. You may dispute inaccurate information.
Posted on
May 27, 2009
at
9:57 am
To clarify: a settlement of your debt stays on your credit for 7 years
from the date the debt was settled. Enrolling in a debt settlement service does not appear on your credit at all...unlike debt management plans (DMPs) where it will show on your credit that you are "Enrolled in a DMP" or something along those lines. While you are enrolled in a debt settlement program, your accounts will show up as past due until they are settled, and then it will read that your account was "settled in full", "settled" or "settled for less than the balance" for a period of up to 7 years from the date that occured.
Posted on
June 15, 2009
at
3:14 pm
Ok to clarify what the last poster has touched on- if you paid the balance in full through a payment plan, it would not in fact show (once the debt was paid off) that the account would be "settled" as he or she mentioned. It should reflect on your credit report that the debt was "paid in full." If you paid a debt in full and it shows on your credit report that the balance was "settled" you should contact a credit bureau to report the innacuracy and to have them update your credit report accordingly.
Posted on
June 16, 2009
at
3:12 am
why should I settle instead of file for bankruptcy?
Posted on
June 16, 2009
at
4:15 am
A settlement on your credit report is basically not as bad as how a bankruptcy looks on your file. Just like what Debt Guru said earlier, a settlement stays on your credit report stays on your credit for seven years, and being under a debt settlement service won't reflect on your credit. A bankruptcy will appear on your credit file for 10 years from the date you filed for bankprutcy and 20 years on your public records.
Posted on
June 22, 2009
at
8:00 am
A paid account remains on your credit file as long as an unpaid account and paying does not make your credit score any better. You should send a "delete for payment" letter to collection agencies and see if they will be willing to account your payment for removing the debt from the credit bureau's. Get it in writing and signed by them. Sending collections payments is a nice thing to do but in reality is not helping your credit scrore one bit.
Posted on
June 22, 2009
at
8:18 am
Caffeinatrix- that isn't necessarily true. Chapter 7 bankruptcy does in fact stay on your credit report for 10 years, but Chapter 13 though stays on your credit report for only 7 years. CarlO- that is absolutely false. Payment history makes up 35% of your credit score (the largest factor), so making payments is actually very important if you want to maintain a good credit score. And trying to get a collection agency to "delete for payment" would be really hard to do since that does not even exist.
