Impact of settling on credit report?

sho_me_da_money

Hi,

I have several credit cards and owe around £10K.

My employment circumstances might be changing for the worse and I am worried that I may not be able to make the payments.

If I was to call the lenders and obtain a settlement figure, what impact would this have on my Credit rating if I was to pay the settlement figure of in full versus making regular payments and paying off the 10K?

Example scenario - my credit rating is 500.

If I was to continue making payments and pay off the card in full with consistent and no late payments, how would this impact my rating.

vs.

I call the company and obtain a settlement figure and pay that off in full, how would this impact my credit rating?

Would my score be significantly higher in the first option? If so, how much better?

Would my credit report be marked as "settlement satisfied" or flagged with something that showed any future lender that I settled if I went with option 2?

Will lenders be more unwilling to offer credit if I went with option 2?

sourcrates

Hi,
Credit ratings are meaningless dribble used by the credit reference agencies to sell you unnecessary credit repair tools they flog.

They mean nothing, each lender scores you differently dependant on there policies, so it makes no odds if you settle in full, or partially settle, time heals all wounds, the longer negative information is on your file, the less relevance it has.

fatbelly

sho_me_da_money wrote: »

Hi,

I have several credit cards and owe around £10K.

My employment circumstances might be changing for the worse and I am worried that I may not be able to make the payments.

Are you still making the contractual minimum monthly payments?

Or have these cards already been defaulted and on some sort of a payment plan?

If the former, then the settlement figure is 100%