settlements? help
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settlements? help
| Sat, 01-28-2006 - 3:05pm |
Hi all! Just wondering, once a cc has gone into collection, what happens if the person pays a settlement to the cc rather than the balance in full? Does that negatively affect a person's credit score as opposed to paying the balance in full? We are struggling with that question right now...should we struggle to pay the balance in full to bring the credit score up faster or go ahead and accept the settlement offer? Thanks for any help!

I think paying in full (eventually) would be better for the credit score. I do know that if you take the settlement, they will report the difference to the IRS as income to you and you then get to pay taxes on it so........... maybe settlements aren't that great.
Megan