Credit Score Rank

March 11th, 2007 |

Author: admin

credit score rank
Question: How bad is to settle debt?

Hello,

I owe about $19000 on a credit card, but I have never been late or missed a payment. The bank recently changed the minimum payment from 2% to 5% and that will make it hard for me to meet the minimum payment. My Credit Score is in the low 700's

I called the bank and complained about it and they said that I have two options:

a) Payment plan with an interest rate af 12% for 60 months; I'm sure I can get a better rate from my local credit union.
b) Settlement, $15,000 that can be paid in 2 installments.

I'm very tempted on taking the settlement, but how is it going to affect my credit ranking? I really don't expect applying for anything in the next few years, but you never know. I know I have to pay taxes on those $4,000

Thanks for your input.

Answer: You have another option. For a credit card bank to do this to a good customer really ticks me off. With your credit rating you can go to another lending institution and tell them what happened let them check out your credit history of payment. Guess what? Any lender will pay your bank owned credit card off for you. Set up a payment plan to where you can pay it off. This will keep you a high score of credit. Ask at another bank for more options on this but go to another bank. If the bank you have plays these tricks on their customers this means it won't be long and they will probably go under. If they are doing this to you they are doing it to everyone else.

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