What would be best for my credit score if any?
I owe between 1000-2000 dollars on a delinquent credit card (over a year delinquent). What would be best for my credit report and score? a) pay in full all at once b) pay in full over three or four smaller payments c) settle for less than the amount Anyone that knows a bit of this I would appreciate any advice.
Public Comments
- I would pay it off as fast as possible. You may be able to reduce the amount, but either way, just get it off your credit report. The sooner you do, the sooner you'll be about to start rebuilding your credit.
- Pay in full at once this will also help get your credit back in line more so then the other options.
- Pay in full or pay in full over three or four smaller payments. But DO NOT settle for less if you can help it. You will get a big surprise when tax time comes around and the tax man says, "Did you know that the amount you didn't pay when you settled for less is considered income and you have to pay taxes on it?" This happened to us and it wasn't pleasant. So, I would pay it off right now and get it over with. Then you won't have to worry about it anymore.
- Try to pay it off ASAP but be on time EVERY month - this really helps your score, about 30% of your total. If you have other cards with a credit history, then you can close this card so you aren't paying anymore fees and start establishing a better history. And definitely read Suze Orman's Young, Broke & Fabulous!!
- Pay it all of as soon as possible.
