Credit care debt – Pay in Full or Settle?
I understand that if settling — I will receive a 1099c from the IRS to pay 40% of the difference if I settle but is there any other advantage in respect to my credit reporting if I pay in full instead? Will it come off my report sooner or do Lenders look more favorably on this? Does it make a difference at all?
You will receive a 1099c from the IRS to pay 40% of the difference???
Na, you wont. The creditor or collection agency rather take their write off for their loss.
You will not be 1099ed…trust me.
Ok so heres the deal….
If you pay in full…and the account was in collections it will say collection account paid in full. If its not in collections…it will just say paid in full and still show where you messed up on your payments etc.
If you settle in full…it will say collection account settled in full…if its not a collection account it will say account settled in full by original creditor.
Now here is the thing…if you settle…it doesnt look so great but its not a big deal. The same creditor may or may not do business with you again. Some do some dont. NO BIG DEAL.
How long will it be on your credit report? 7 years from the date of your last payment…either paid in full or settled. No difference.
But…if you are slick…you will call them up, give them a story about why you cant pay in full and cut a deal with the bill collector that once they received said funds…they will give you a "deletion" on your credit report. This means they will poof be gone and there will be no history of the this creditor on your credit report. They may or may not go for it. Some will pay ok if you want a deletion pay it in full than you will get one…than do just that.
But make sure you get the deal in writing or else they will come back an screw you for the rest of the $$$ or they wont give you a deletion.
Good Luck
August 4th, 2010 at 11:52 pmI think u should pay in full
August 4th, 2010 at 11:52 pm