Should I accept a credit card settlement offer for $99?

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Should I accept a credit card settlement offer for $99?

Postby w0cky » Fri May 04, 2012 3:38 pm

I received a letter today from a collection agency regarding an old credit card that defaulted about 4 years ago. I haven't made a payment since, but the balance is around $4200.

Now they are offering me a settlement consisting of a one-time payment, which is $99. I've heard of settlement offers at a significant discount, such as half the balance. But $99 to settle a balance of over $4k?

Are they just headhunters trying to get anything they can because of the statute of limitations? And would this $99 payment actually impact my credit report/rating in any way?

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Postby Crashem » Fri May 04, 2012 10:24 pm

Assuming sol is over. You need to be careful as some states have ways to reset sol with a payment. As far as credit score, paid vs unpaid doesn't do much. However some lenders for bigger items such as loans require your unpaid collections to be resolved.

Ideally if you can get a pay for delete agreement, that would be great. Check your credit report to see what is showing for this debt. Also if you make any agreement, careful to get in writing and that it covers all the key points
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