When I payoff a creditor by settlement in the same year, how much does that effect your credit score points? ex:-10,-20
The simple answer to your question is I cannot really tell you.
Being delinquent will hurt your credit, as your payment history variable is impacted. BUT - when you get a settlement the debt is paid off which improves your credit utilization variable and lowers your debt owed. Since credit is so complicated, the answer unfortunately is I cannot tell you the exact number. I can tell you that you can rebuild.
Consumers with negative credit listings, such delinquent accounts, can establish new positive credit lines to try to counterbalance the negative impact of their delinquent items. And the longer they make their payments on time, the more their credit ratings should improve.
Your credit rating is calculated based on several variables, including your payment history (do you have any late payments, charge-offs, etc.), the amount and type of debt that you owe, if you have maxed out any of your trade lines, and then several other secondary factors like the length of your credit history and how many recent inquiries have been made to look at your credit history. Since your past payment history accounts for approximately 35% of your FICO credit score, establishing a good payment history with your creditors is essential to building and maintaining a good credit rating.
To learn more about credit, credit reports and credit scores, I encourage you to visit the Bills.com Credit Resources page at http://www.bills.com/credit
I hope that the information I have provided helps you Find. Learn. Save.