Can I bargain when paying off credit card w/out damaging my credit?
I currently hold a balance of $5000 each on two separate cards. $2000 each of which is actually purchase fees, the rest is accrued interest. Can I bargain with the cardholders to pay a lower amount without hurting my credit? Any advice settling credit card debt deeply appreciated! :o

Typically they do not bargain on the amount until after it's charged off... but if you do luck out and they will bargain, you do still suffer some in that the bad history will still show, and rather than showing as "paid in full" and a zero balance, they'll show it as "settled in full"... which creditors pick up on.

Bottom line: Your credit's already bad, so if they will settle for less, then go for it.

Credit card providers will often be flexible on interest rates and fees, but not on balances.

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Originally Posted by rickj

Bottom line: Your credit's already bad, so if they will settle for less, then go for it.

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I'm not trying to be a snot here (jus' comes naturally I guess) but the original question was will it hurt the credit score.

The original question did not say anything about the credit score being already bad. Sure, carrying a high balance (and one that has been held for so long with high % rate as to rake in the interest) is not good for your rating, but if all other things are sound, you can still have a decent credit score that isn't bad.

So I'm not sure, without knowing the situation, that we should assume the best advice is built on the premise - well your score is bad anyway so why not?

Hi All & thank you for the advice so far! My credit isn't great, no, but I don't really want to "knowingly" damage it more, especially that I'm at a point in my life where I can start fixing it, but I was just wondering if it's worth trying to save a couple thousand dollars now, knowing I am going to "start rebuilding" soon! I hope I'm not too confusing!

I am Speaking from experience. Our credit was already ruined, so we let the stuff charge off, to get the offers on less than full balances. We got the offers, and we paid the balances, some at 75% off balance. Now, credit report reads: "Balance paid at less than full" So now, everything is paid, and we can re-establish the credit from a fresh start. Instead of staying behind forever.

Just a point here. You indeed have to "restablish" credit. Having debts listed as paid at less than full, is going to affect your credit score adversely.