What will my credit report show if I choose to settle an old credit card account with a debt collector?

I would like to settle a few closed credit accounts that have been charged off and bought out by debt collectors. The collection agency is offering me a discounted rate to pay off this account. If I choose this option, will my credit report eventually show this account closed and paid off, as stated by the agency?

What will my credit report show if I choose to settle an old credit card account with a debt collector?
Think very carefully before you do this. Depending on your state, debts are only legally collectible for a certain period of time. In addition, they can only be reported for a certain period of time. Depending on when the last activity was on your account, you may have passed this time threshold, or are approaching it, but paying a lesser amount will re-start the reporting time clock. Do some research and find out what the statute of limitations are in your state. You may have to live with a crappy credit report for just a little while longer until such time when the negative stuff begins to fall off.





I'm not saying that's the moral or ethical thing to do, but we're not here to judge anyone's moral compass (or lach thereof).
Reply:nothing good. It'll just show it as closed by the credit grantor. The only difference is that it won't show a balance due on that account. But it's still a negative when viewed by a creditor.
Reply:I wouldn't pay the debt collectors anything. The damage is already done, so put the cash away for a rainy day.


Like others said, seven years to clear negative items from your credit report.
Reply:hello, i don't know how old this debt is but if it is older than 7 years on Anything .......fight back. i have learned thru personal experiance the dishonesty and bullying of both the big 3 credit reporting agencies (Experian,Transunion,Equifax) and the debt colection agencies. IF YOUR CREDIT REPORT, AT ANY TIME, REFLECTS WHAT IS NOT TRUE (OR LEGAL)-WRITE THEM A LETTER STATING WHAT IS TRUE.THE SAME GOES FOR THE "DEBT COLLECTORS". GOD BLESS YOU , 777
Reply:it will still show on your fica score as 'collected'
Reply:Yes, if you are working with a credible collection agency or debt counseling service. The "bad" part of your credit will stay on the credit reports for 7 years after the LAST active action.