- Centurion Member
- Posts: 4913
- Joined: Sun May 20, 2012 4:35 pm
- Location: WI
To creditors, of course either way is going to be a black mark. It may make some difference if you apply for something and get decline you can say you paid them off in full. But if you could do that, you would have been better off avoiding the judgement in the first place which will remain on your record for years to come lowering your score and making it harder to get credit. Not meaning to pass any judgement (bad pun) just pointing it out.
Now if they will delete the tradeline from your credit if you PIF, that would be WELL WORTH paying the extra 500 for. Ask your attorney if they would agree to this. If so, it would be foolish to try to save 500 bucks then because in the long run you will pay that and more for other credit down the road if that's your only black mark. Also Cap One is known to eventually forgive from what I've read and PIF may give you enough goodwill that after a few years have passed you can get back in the door (probably won't work for a while).
I'm just thinking that if all you want to do is save money, yeah they may well settle for 900, but see if you can't get the tradeline deleted for paying in full. You said you need your credit as good as possible, and a charge off and judgement is going to hurt it. You have nothing to lose by offering the worst they can say is no.
That would be my advice.
Hey wait a minute you must mean a suit right rather than a judgement. A judgement means they already won where a suit means they filed and you have to go to court. I doubt they would negotiate a judgement they would just garnish your wages. So this is still in progress right?
If so and you settle the judgement would not appear on your credit HOWEVER the charged off tradeline will unless you get them to agree to delete it. Again that's worth paying in full to get.
Finally be aware that if you settle for 900, they will file a form with the IRS that they forgave 500 in debt, and you will pay taxes on that as the IRS considers that as "income". If you are in say the 30% bracket, count on being taxed enough that you aren't really saving much money on a settlement. It all adds up to where I think just PIF is the way to go and try to get them to remove it as part of that from your credit.