How bad will settling with Chase hurt my credit score?

W

warlekurtshaunn

New Member
Need advice on settling with Chase for a ridiculously past due credit account.
Background: The original debt is still with Chase—btw they never sent it to third-party collections. It's one of 3 credit accounts I unfortunately stopped paying a few years ago after escaping an abusive marriage and not making enough to pay back on my own (they were shared debts but in my name).

Offer: Chase calls me almost daily about paying a reduced debt. Unpaid balance is $8566. Their offer? $2570. It should go without saying, but I can't pay it off in full. I'm now stable enough to afford the smaller amount in a few payments.

Question: How badly would settling hur my credit score? Tbh, was the major damage already done when it was closed for collections almost two years ago?
 
Ugh, even if you settle, that negative mark still hangs around on your account, and you'll have to jump through hoops to get it removed. Honestly, I'd skip the settlement and go straight for getting it wiped off the report. The only time I'd even think about settling is if you're actually planning to stick with Chase for banking down the road.
 
You can either settle for a lot less or tell them you're asking for a pay to delete. That item will stay on your credit score until the month and year shown on your credit report. Right now, these companies aren't showing much mercy for goodwill letters or pay to delete requests. I've paid off a few small debts in full, and they still won't remove the charge offs. It's pretty rough.
 
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