Is a settlement or high debt to credit ratio worse on my credit report?

Author: annareeb
Joined: 15 Feb 2005
Posts: 1
Posted: Tue Feb 15, 2005 1:12 pm
Post subject: settlement question

I am looking to get rid of a credit card balance. This is an OLD account, principle paid long ago. The credit card co, drives me crazy with up and down interest rates, I will never pay this off, I am paying much more than the minimum and am just tired of it. the account is closed. Will it hurt my credit to much to settle it? they have offered me a settlement , though I am not currently past due or even been turned over for collection... Should I do it? does having this debt affect my credit to debt ratio.. which is worse a settlement or a high debt to credit ratio?? Any advice would be appreciated.

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Author: NightStar
Board Monitor
Joined: 07 Nov 2003
Posts: 2601
Location: Illinois
Posted: Tue Feb 15, 2005 4:00 pm

Best to avoid settlement notation on the credit report if you can. Just bid your time making payments until you can transfer this balance to another card.

Other lenders will view it negative if you pay less then full balance, and may adversely affect furture approvals.

Best Regards,
Pammila Phillis
Board Monitor
U.S. Citizens for Fair Credit Card Terms, Inc.
http://www.cardratings.com
501-663-0314 PH
501-663-0033 FX

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