If i have a company on my credit report?

Question

that offers me a settlement to close the account how does that settlement help or hurt my report

Answer 1

i don't know what Jefferey is talking about.

if you end your relationship with the company in good standing (as in, make a settlement that you both agree on and follow through with it) it's better than not paying it.  period.  

if you don't pay it, the company has 10 years to hold on to that account.  then they can choose to write it off or sell it to a collection agency.  then the agency has 10 years... and so on.  sometimes they can even garnish your wages to get their money, in which case any hopes of a settlement are gone.

it would not hurt your report.  if anything it would help it.  if it goes to a collection agency, your score will plummet.  if it's already at a collection agency and you work it out, your score won't get worse.  not paying will s***w you unless you plan to file bankruptcy in the next 4 years.

Answer 2

Paying it will not help your credit. Actually, it will probably hurt your score. All paying it does is prevent them from suing you over it.

If they will delete the account from your reports or agree to remove all of the derogatory notations, then it would help your score quite a bit.