Hi all,

Settlements show differently depending on the creditor’s policy.

The two most common are: "Settlement Made" or "Paid in Full"

Don’t let anyone fool you. When your credit rating is bad, payment in full or settlement in full is practically the same for your credit rating.

Reg, you have already discovered that yourself first hand, your score increased after it was paid.

This happened because of two things:
1) Your total debt service ratio improved
2) Inquiries from those creditors/collection agencies stopped since the debt has been settled.

We have seen thousands of credit reports with low credit scores and I can see no difference at all if paid in full or settled in full.

Except you save a ton more money when the debt is settled for less.

This is a good article to read for more info on debt settlement and your credit rating: Effect of debt settlement on credit ratings

Here's mine

The 1st ONE AMEX - I paid them in full but its only in the comments that it says "ACCOUNT PAOD" and after that it says "SETTLEMENT MADE" for TD ( I settled with them ,lmaot 80%)

AMERICAN EXPRESS
Phone Number: (800)668-6500 High Credit/Credit Limit: Not Available
Account Number: Payment Amount: Not Available
Association to Account: Individual account BalanceAmount: $0.00
Type of Account: Revolving Past Due: $0.00
Date Opened: 2000-01 Date of Last Activity: 2005-02
Months Reviewed: Date Reported: 2009-04
Status: Bad debt, collection account or unable to locate
Payment History: No payment 30 days late
No payment 60 days late
No payment 90 days late
Prior Paying History: At least 120 days past due ( 2005-11 )
At least 120 days past due ( 2005-10 )
At least 120 days past due ( 2005-09 )
Comments: Account paid
Closed by credit grantor

TDCT VISA
Phone Number: (800)983-8472 High Credit/Credit Limit: $1,000.00
Account Number: Payment Amount: Not Available
Association to Account: Individual account BalanceAmount: $0.00
Type of Account: Revolving Past Due: $0.00
Date Opened: 2000-03 Date of Last Activity: 2006-01
Months Reviewed: Date Reported: 2009-04
Status: Bad debt, collection account or unable to locate
Payment History: No payment 30 days late
No payment 60 days late
No payment 90 days late
Prior Paying History: At least 120 days past due ( 2006-08 )
At least 120 days past due ( 2006-07 )
Three or more payments past due ( 2006-06 )
Comments: Settlement made
Update freeze requested by credit grantor

========================

Credit Score was 538 in March, on May 30th after these 2 were settled - went up to 566

Is this the norm? Settlement made and Account paid. I am going through all settlements to start fresh, will these comments affect the way creditors look at me? What difference would it have made, if I paid in FULL - I certainly did for AMEX

Should I do something about this?

This is new to me, after reading lot of posts here - I assumed that a debt settlement means payment considered in full and would show the same on the credit report as it was paid in full

Can Richard confirm this?

Thanks Monty

I will pay the whole thing off then

debt settlements will show up as R9.. BAD DEBT because you're causing the creditor to lose principal and interest.

If they agree to settle it for $500, how will it look on my credit report

I would rather pay the full amount, then it have a negative impact on my credit report

here is how it appears at Equifax

WFFRS FUTURE SHOP
Phone Number: (416)382-5300 High Credit/Credit Limit: $0.00
Account Number: XXX...785 Payment Amount: $28.00
Association to Account: Individual account BalanceAmount: $903.00
Type of Account: Revolving Past Due: $0.00
Date Opened: 2006-10 Date of Last Activity: 2009-03
Months Reviewed: 28 Date Reported: 2009-03
Status: Paid as agreed and up to date
Payment History: 03 payments 30 days late
01 payments 60 days late
No payment 90 days late
Prior Paying History: One payment past due ( 2009-02 )
Two payments past due ( 2008-11 )
One payment past due ( 2008-10 )
Comments: Account Closed
Amount in h/c column is credit limit

The balance on this account is now $1000.00.I would offer them the $500.00 in a one time lump sum payment to settle. Do you know if this item is reporting in your credit file? If you play your cards right they will settle this debts for $500.00.If they accept make sure you get the settlement offer in writing and faxed to you before you hand over your money.

Anyone have an answer?

I have a card that is no longer active due to Wells Fargo no longer underwriting Future Shop Cards ( I believe that Household Finance does now)

A few months ago my balance was about $1500, they phoned and offered (when I was in arrears) that if I made 2 payments of $500 that they would consider it paid off. I was able to make the one $500 payment the first month, but the next month I could not afford the $500 so I told them I would just continue making payments.

Now I am in the position that I can pay the other $500. Should I approach them and see if they are willing to do this still, or does this report as a negative on my credit report. I would rather pay off the complete balance if it is going to negatively affect my rating