I have 4k in credit card debt, I can settle it myself now for 2,800, but how much will that hurt my credit?
I can eliminate this debt today by paying this card off and keeping the much needed ,100 it will save me, but will this cause too much of a negative impact on my good credit to make it worth keeping the money?
In actuality, income does not affect your credit score. Also, settling can help you out. If you don’t pay it off now, it will sit on your credit report for much longer then if you settle. If you are at the point where you can settle for less, then you have already hurt your credit. However, the collection agency can still sell your account to someone else who will ding your credit, and they can do the same…and on and on and on. That means, the longer you don’t settle, the longer your credit score will hurt you.
However, once you have settled, you can get them removed from your TRW by doing a simple TRW Clean Up. It’s easy and only takes 30 days to get your score up. Plus, there are tons of other easy ways to strengthen your score fast. Check out the two articles below to see how to do this fast. I’ve done it myself and it does work.
Hope this helps.
October 13th, 2009 at 4:37 amYou should look at my questions i am going through the same thing.
From what i have got so far..
What collectors won’t tell you, is when they settle for an amount that is less that what you owe, 9 times out of 10 the rest of that amount will just sit on your report and it will usually haunt you later.
Before deciding to pay the amount in full, you need to contact either the collection agency or the original creditor to have that item "tradeline" removed from all three credit agencies. That is the only way that it impact your score to your advantage.
October 13th, 2009 at 4:37 amHaving a high income to debt ratio can hurt your credit score. Having zero debt is a good thing. In about a year after settled it should be over looked.
October 13th, 2009 at 4:37 am