Does the word Settlement on your credit report look that much better than having charged off there?

Does settlement look THAT much better for me to pay off these balances (or pay in full using payments) or should I just give up and accept that my credit is basicaly screwed? I want to know how to fix this but I don%26#039;t want to waist my money on something that is%26#039;nt going to make a difference on my record. PLEASE HELP ASAP!!

Does the word Settlement on your credit report look that much better than having charged off there?

A settlement still looks bad. And with today%26#039;s financial crisis, creditors are looking at every single negative item on your report. A settlement can get your loan rejected.

So lets get one thing very clear. If you pay off a debt in full, or make a settlement, all the creditor is required to do is update your credit report to show a zero balance. But all of the information about charge offs, late fees, delinquencies, and everything else will still be there. You still have a bad mark on your report, and it will stay there for the remaining reporting period.

You are going to see people tell you to pay it off anyway...a paid delinquency looks better then an unpaid one. That%26#039;s bull! They are still bad marks.

So what you want to do is negotiate with the creditor. In exchange for payment (or settlement) they must DELETE this item from your credit report. Get this agreement in writing before you pay them a dime, because many creditors lie about their agreements.

Otherwise, yes you are wasting money by paying off a debt.

Does the word Settlement on your credit report look that much better than having charged off there?

settlement looks better than charged off or bankruptcy. But paying them in full is always best.

If you want to live without credit for awhile and start over, try to settle. Or talk with a credit counseling agency, the good ones can help you get your payments down and consolidate them into one. If you own a home with equity you can transfer your accounts to a home equity loan and get a MUCH lower rate (but then if you don%26#039;t pay, you could lose your home).

Does the word Settlement on your credit report look that much better than having charged off there?

Settlement looks better than unpaid.

Keep in mind that paying old debt, even if you pay it in full, will not increase your credit score. The damage to your score has already been done. However, creditors do look at your whole report.

Be sure to get any settlement agreement in writing and don%26#039;t give them direct access to your bank account. You should ask for delete for payment (that will help your score) -- some will, some won%26#039;t. The older the debt, the more likely to settle for smaller amount. Lump sum gets the best deals. Payment plans have to be short term.

Anything close to 7 years old will age off. So you may want to just wait that out.