Credit Cards

[Sol_y_Paz]

Hi there!
Does anyone know if credit cards will settle if paid in full for less that the original balance? If so, how does one go about doing that? Question two: will if hurt that person's credit score?

[Sol_y_Paz]

one quick note: credit cards mean credit card companies

[EricaDoula]

I don't think they will, atleast not in most situations. Good Luck though, maybe you will find they are moer willing to help you!

[nataliachick7]

no they wont. i speak from experience.

[JamieCatheryn]

Sometimes they will offer 80% payoff if it's already in collections, and that whole thing really hurts your score and could end up with high extra fees for being very late.

[Sol_y_Paz]

Thank you for your replies.

I have read that you can possibly get them to settle but you have to fall behind in your payments to even start to have bargaining power. And it gets you on the credit score.

There seem to be only few options available.

Any more useful hints are welcomed!

[Denvergirlie]

Unfortunately, you have to go to collections to get an offer like that and it will greatly affect your credit score. You can recover your score, but it will take time.

good luck

[Drummer's Wife]

If your card is still open, then I would keep making at least minimum payments. It's true that once you get sent to collections, after so long of them trying to collect the debt that they will settle for less than the full amount.... BUT, once it's to that point, your credit is already screwed. Collections are such a huge negative that paying them off at that point isn't going to do you much good. Unless you want to write off the debt entirely, and basically stop paying what you owe, then you'll have to eventually pay off the full balance.

[Fuamami]

Originally Posted by Denvergirlie

Unfortunately, you have to go to collections to get an offer like that and it will greatly affect your credit score. You can recover your score, but it will take time.

good luck

Yes, we dealt with this with dh. They sell the debt for pennies on the dollar to collections companies, and that's why they are willing to take less than the original debt. It took dh quite a few years for those charge-offs to come off his credit.

[nataliachick7]

They will take less then you owe, but the op was wondering if it would be considered "paid in full". NO it will NOT. On your credit report, it will state you paid the debt, but for a lesser amount.