Should You Pay in Full or Settle?
If you’re wondering about Should You Pay in Full or Settle, this is the blog for you.
This is a topic that I’ve been getting a lot of questions about.
Should You Pay in Full or Settle?
A lot of people are under the false assumption that having a collection show on the credit report as paid in full is more beneficial to your score than having it show up as settled.
This is just not true.
The credit score algorithm does not care and has no way of distinguishing between paid in full versus settled.
Therefore I do not recommend that you pay in full unless – at your request – that collection agency is willing to give you a letter of deletion.
That means that account will not show up at all on the credit report.
Therefore, it doesn’t matter if it shows up as settled or paid in full.
So, should You Pay in Full or Settle?
Answer: Only pay in full if you request and they’re willing to give you a letter of deletion.
Settled versus paid in full doesn’t make a difference as far as how it reports to the credit bureaus.
Experian Agrees ~ Check it Out HERE
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