An account showing as "settled as agreed" will likely have a negative impact on your credit score. However, you must keep in mind that a "settled as agreed" account will have less of a negative influence on your credit score than an unpaid account with an outstanding balance.
Therefore, if you do not have enough cash to pay off your delinquent accounts in full, it will still benefit you to settle with your creditors. You must also weigh the negative impact of a "settled" listing on your credit report against the amount of money you could potentially save by settling your debts rather than paying them in full. Considering that many creditors will settle delinquent accounts for as little as 30% to 40% of the balance, if you have $20,000 in outstanding debt, you could save as much as $12,000, or more, by settling your
You must ask yourself if potentially preserving a few points on your credit score is worth that kind of money. Most consumers answer that question in the negative, preferring to settle their accounts when possible. If you can negotiate settlements with your creditors, I think
that you should take advantage of those offers, despite the negative effect the settlements may have on your score. Once you have resolved your accounts through settlement, you can work to improve your credit score through disputes and establishing new positive credit lines.
I encourage you to visit the Bills.com credit solutions page at http://www.bills.com/credit/ to read more about credit scoring and ways to improve your credit score.
If you are interested in settling your credit card ccounts, you may want to consider the services offered by debt settlement firms. These professional firms can provide the experience and knowledge many consumers lack when trying to negotiate with their creditors on their
own. If you would like a free consultation with one of Bills.com's pre-screened debt resolution firms, I encourage you to submit your contact information here: http://www.bills.com/debthelp/debt/
I hope this information helps you Find. Learn. Save.
Best of luck,