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"settled" vs. "paid as agreed"

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I am preparing to pay outstanding debt to several credit card companies. One has offered an amount lower than the outstanding balance to settle. They have told me that they will report to the credit bureaus that the account has been "settled". I have been told that when you want to repair your credit score, it is better to have on the credit report that the account has been "paid as agreed". The credit card company won't do that. I understand that this will negatively affect my credit score. If I pay the entire amount due, will they then report "paid as agreed"?




Paying in full will give you a little bit more bargaining power to negotiate a "pays as agreed" but it will be entirely up to the OC. Was the account just past due or had it been CO'd?

Sub: #1 posted on Thu, 07/31/2008 - 02:39

NASCAR_Devil NASCAR_Devil
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It has not yet gone to collection. I just refinanced my apartment in order to pay down my high-interest debt but want to be smart about the best way to rebuild my credit score.

Sub: #2 posted on Thu, 07/31/2008 - 02:43

lleavitt lleavitt

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Doesn't sound like you went too far past due. 30-60 days? You might be able to get them to remove the late payment history by writing a Goodwill letter vs payment on condition of a favorable reporting. They are under no obligation to report in-accurate info but you might be able to pour on the sugar to get them to remove the late pays.

Sub: #3 posted on Thu, 07/31/2008 - 02:47

NASCAR_Devil NASCAR_Devil
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