Credit card settlement

nymess

LoanSafe Member
Nov 9, 2008
58
1
8
I have 2 credit cards that have been closed on me because of filing for a bankruptcy ( but we ended up not going through with the bankruptcy) one we stopped paying on and the other we are still paying. My question is this: if the card has already been charged off, will my credit take a hit even more if I settle the debt vs paying it in full?
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,066
162
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San Diego, California
www.loansreduced.com
Your credit may take a hit, yes. From what I've been told by credit repair companies, when you pay off an old collection or charge off it becomes a fresh new item on your credit. If you leave it alone, it will fall off in 7 years....if you pay it off it may re-report to the bureaus as a negative item impacting your credit score.