Credit card d by repayment and credit score
I have about $8500 in credit card debt that is with two collection agencies. They have called me and are both willing to take a reduced settlement. My question is will that negatively impact my credit score? I need to raise my credit score and if that means paying the full amount, I will. And if I pay the full amount, how much of a credit score increase can I expect to see? I have no other debt and incidentally, the money that I have to pay this off, comes from a small inheritance that I received. Thank you
Terry Says
No, no, no. Once the account is sent to collection, your credit is already ruined! There are limits on how long they can hound you. but even if you repay a portion, don’t expect your credit score to bounce back for at least 5 years.
You might be able to make an offer to settle for a lower amount. For example, you could offer to pay 25% — telling them that you came into a bit of money (don’t say how much) from a small inheritance. Tell them you are making the same 25% offer to your other creditor/collection agency. Be tough!
If they agree, GET IT IN WRITING, that they will write off the balance of the debt, before you send a payment.
Do this with each collection company.
