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Does making a settlement payment on a debt improve your credit?


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Answered 2006-08-21 15:46:56

Also make sure it is signed by someone--(unfortunately you might be talking to a lowly collector that told you he/she was a supervisor). If the letter is not signed, I'm afraid it won't do any good sending it in to the credit repositories to get a correction done on your report. Nowadays, anyone can type out a letter so the repositories will verify that the signer does or did work for lender before correcting the problem. only if you get it in writing from the collector that they will report it paid, or pain in full or just remove it. To many times they will lie to you and not report anything or still report it bad account. Always get it in writing and tell them you want it reported paid in full or to remove it as it saying paid as settlement will not help you as that is negative.


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By reducing your debt and having low balances, making your payment on time and having long established credit.

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Yes, it'll be there until the payments are completed.

A settlement on your will have a negative impact on your credit score. Why? Because you are making a non-full payment of your debt. However, it is safe to assume that if a credit card company is willing to settle your accoutn balance, you are ALREADY delinquent in the timely payments. Thus, your trading apples for cranapples with respect to your credit score. That is, your credit is likely bad continuing to make no or late payments versus settling an account for less than the value of the debt. Seek the advice of legal counsel.

By making on or before time payment of your financial liabliliies.. like EMI's, credit card payments etc..

No, it won't hurt your credit. In fact it will improve your score.

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It depends. If you have been paying this account on time and it is reporting as a positive on your credit and you pay it off, that will be one less positive account reporting to the credit report. If you have too much credit and the amount of credit is making your credit look like you have debt it off. I f you have been late on it, catch the payment up and keep it up so that you can have an account that is reporting positive to your credit reports and start cleaning your credit up.

Yes. If you are recieveing phone calls or lettters in the mail wait until you have saved at least 30% of the balance that is owed, and settle with this company. Make sure you get everything in writing before making this final payment. Wanda Improve Credit, LLC

yes, if you are done paying with itAdditional answerBut if you're late making a payment to settle a debt (credit card, for example) this will be recorded as a default.

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as long as they want to, Generally they will sell the account to a collegetion agency after 6 months of non-payment

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It depends on the creditor. I would start at .10 cents on the dollar or 30% of the balanced owed, and work from there. Speak to the Manager of the department when negotiating, and get everything in writing before making a payment.

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