I want to know if my husband makes a settlement offer and pays them , is that better for his credit report because we are trying to buy a house and they told us to take care of everything on his credit report and I want to know if thats a good idea or not I dont want to blow off ,000 for nothing , if it's not going to make a difference... Please help
Zithromax For Sale
How to Improve Your Credit Report
You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – credit-report-free.totalh.com
A settlement on a defaulted loan is "more negative" than paying it in full. Only the lender can tell you if a settlement is acceptable to them.
This is the one time that paying defaults/charged-off credit card debt is necessary…They want all defaults paid off prior to giving you a mortgage.
** Very important: DO NOT tell the collection agency that you are trying to clear your credit report to get a new mortgage…if you do they’ll hold your credit rating hostage to extort the most money from you.
Keep all communications in writing: Make a written offer to settle for 20% and go from there. You don’t need elaborate form letters to do this, simply write to them in this format:
I am willing to resolve this issue for $ [x] if your firm will send me a signed agreement on your letterhead confirming that this account will be "Paid in Full" upon receipt of this amount from me. This is not an admission of this debt but rather an attempt to resolve this matter. Upon receipt of this letter from your office agreeing to this settlement amount, I will send you a USPS money order for this amount and this matter will be settled.
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FYI: If this is for charged-off credit card card, be careful…renewing contact with collection agencies over old charge-offs can stir up trouble in the form of aggressive collection activity. Keep the wording exactly as stated above .
I agree with Catdad. Do not tell anyone you are thinking of paying off the debt because you are going to buy a house. Every creditor knows that people can not buy a home with any outstanding collection and will know they will be paid if you want the house.
If you have enough time, the first thing I would do is dispute them all. Just get your credit report and dispute all the negative information. You will be surprised how many lenders don’t have the time to research the debt or just don’t care to if the debt is old etc. It will take 30 days to have that process complete itself. Then you can contact all the remaining companies and offer to settle.. I would do just as Catdad said and offer 20%. If they are interested, they will probably counter offer.
If you have found a house, you probably don’t have the 5 or 6 weeks to do all of that and in that case, I’d do it two ways.. Send your dispute asap and also send letters to the creditors with settlement offer. You may have someone who doesn’t respond to your letter or the CRA and the debt will be removed OR they may respond to you but not the CRA and it will be removed.