Will paying a settlement offer on a debt hurt your credit?
@handsomeitaliano (1050)
United States
January 4, 2010 12:48pm CST
I have an old cell phone account which is my ex-wife's but its under my name, however she has agreed to pay it off. But she wants to pay the settlement offer instead of the full bill.
The full bill is $385
The settlement offer is $250
Will paying the settlement impact my credit score negatively in anyway?
2 responses
@macdingolinger (10386)
• United States
4 Jan 10
If I understand it correctly, the lateness of paying will hurt your credit score, but settling it should remove it from the credit reports. It should at least show it as paid off. It won't hurt your credit report to pay it off no matter how it was done.
@sleepylittlerose (1648)
• United States
4 Jan 10
That will depend on the creditor. Most of the times it does not because they write off the remaining portion and show it as being paid in full. It is probably better to have the settlement amount paid then letting it ride and go past due as this will certainly impact your credit rating.
