If I pay a %age lump sum offered by amex to settle my balance, what is the long term affect to my credit score?
Carried x amount in debt. Amex offered to settle the bill for about 65% percent of the balance payable in one lump sum within 30 days. They told me it will affect my credit score somehow but wouldn’t get into specifics. I want to know what happens to my credit score if I do this.
It will go down as not paid as agreed. It will affect the credit score, however you settled a back debt and you didn’t go bankrupt. Therefore it will go down on the short term, in 24 months it will drop as opposed to a bankruptcy which will be on your record longer. Good move.
August 23rd, 2010 at 9:26 amFor the mess it will create on your credit report I would turn around and counter offer at 50%.
August 23rd, 2010 at 9:26 am