I had a discover card opened when I was a young adult with my father(about eight years ago). As of a 18 months ago he stop paying on it even though the charges were made by him. Now I'm trying to take a step towards bussiness ventures and this and some other things are on my credit are present. I have the option to pay in full or settle in full. Which one is the best to do. (I am taking certain steps with my father as we speak.)

RickJ

It used to be that settlements were considered derogatory, but nowadays with the focus being on Score, this is not the case.

I say if they will settle, then settle. Once it's paid off it will affect your score no differently than if you paid it in full.

This I was told by my contact person with the Credit Bureau.

Northwind_Dagas

If you settle versus pay in full, it will show on your credit report as "settled for less than the full amount." I don't know what impact this has on your score, but I don't think people looking at your report would find it favorable.

herangel

thank you I will settle, the damage is already done. The sooner I get it taken care of the quicker the time will start for it to come off of my report.

aqua@home

I was told that when you settle it is much worse than if it were to say paid in full on your credit.

DrJizzle

it used to be that way... but not anymore. Its really not a big deal anymore. Creditors settle debts all the time nowadays. Besides, she's already 18 months delinquent... it isnt going to make a difference at all.

aqua@home

You are probably right. I think the only difference comes when you are trying to rebuild your credit. With these things on the credit report it would be beneficial for it to say paid in full vs. settled. That's all I was saying. But if that's not how it works then great. Guess I shouldn't say unless I know for sure. My apologies, herangel.

DrJizzle

well, its definitely better to say paid in full than paid as settled... but it is no longer a factor when determining your score. Thats all. If a lender looks at the details of each account, they could see that the account was settled and make a personal judgment about it tho. However, I wouldnt think it would ever cost someone a loan... at least it was satisfied. A settlement is still an agreement between the creditor and debtor.

hardwired

I would pay the full amount due. If you settle for less it will show up as a balance that is delinquent. You want zero balance and paid in full to show up.

As part of paying the balance in full, explain the situation that you did not make the charges and want to pay the balance and close the account in good standing, and ask that they correct any derogatory information or lates and satisfactory paid in full with the 3 credit agencies. Take names and ask for it in writing so you can dispute later on if necessary.

DrJizzle

Not sure where youre getting your information from, hardwire.... but if you settle an account, the remaining difference will NOT show up as a deficiency balance (or a balance that is delinquent) and you will not be held liable for that remaining amount.