Posted on
February 4, 2010
at
8:26 pm
Say a collection company says you have a balance of $500 with them. If you agreed to a payment plan of $50 a month, will it say "paid in full" once you've paid off the total $500???
Posted on
February 5, 2010
at
4:17 am
I don't know, wouldn't that depend on your negotiation with them? And before you even agree to sending any payment - have them validate that debt first.
Posted on
February 5, 2010
at
4:19 am
Is that really your debt? Perhaps you shouldn't agree to it without checking ur state's SoL & I agree with Elizabeth, also check if that collection agency is authorized to collect in your state.
Posted on
February 5, 2010
at
4:25 am
I think his/her question is "Which is better on the report, paid in full or settled?"
Posted on
February 5, 2010
at
4:30 am
I think so too, and the answer to that varies. Some would say that the damage is already done.So "settled for less than the full amount" is as good as paid in full.
Posted on
February 5, 2010
at
5:04 am
It's not even clear what it does to the credit score ...and some say that it;s the creditors/lenders prerogative to take a settlement mark on ur report as something positive or negative. It used to be a bad thing but since many are doing settlement nowadays - it's become a normal thing.
Posted on
February 5, 2010
at
5:15 am
To better understand settlement's effect on the credit score, here's the breakdown of the FICO score:
-35% Payment History- 30% Amount Owed-15% Length of Credit History-10% New Credit-10% Types of Credit Used
