Sunday May 20, 2018

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How is one's credit score impacted if they choose to "settle the account" for a lower cost then the actual amount?
Posted by kf12
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CreditLearningCenter.com says:

Thank you for your inquiry for the CLC Help Center.

If you settle for lower than the full amount with a creditor, a creditor has the right to report the debt as charged off or paid a negotiated amount, which will be a negative item on your credit report.

In you do settle for less than the full amount, you can ask the creditor to report the item as paid as agreed when you negotiate an account settlement of the account.  However, it is recommended that you get this in writing.

Thank you,

The CLC Help Center

Thu Dec 21, 2006 04:44:14 PM
CLC Editors says:

You should definitely get this in writing before sending any money to settle a negotiated debt.

Tue Jan 9, 2007 06:05:43 PM
CLC Editors says:
Many people often do not realize when their account has gone to collections and they are now dealing with a third party collections agency and not the original creditor.
Tue Jan 9, 2007 06:09:28 PM
 
 



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