Do you have a question about consumer credit? You may find an immediate answer by using the search engine. If you can't find what you're looking for, please fill out the form, being as specific as possible.
Please note: The Ask Experian team cannot respond to each question individually. However, if your question is of interest to a wide audience of consumers, the Experian team will include it in a future column.
Our policies
The information contained in this column if for educational purposes only and is not legal advice.
You should consult your own attorney or seek specific advice from a legal professional regarding
your particular situation.
Please understand that Experian policies change over time. Column responses reflect Experian policy at the time of writing. While maintained for your information, archived responses may not reflect current Experian policy.
Credit Advice
Topics addressed on December 7, 2011:
Settling a debt will hurt credit scores
Dear Experian,
Does it hurt my credit score if I settle my account?
- EWH
Dear EWH,
Yes.
The term "settled" means the lender has agreed to accept a final repayment amount that is less than full repayment of the debt. The account will be shown in your credit report with a status of “settled,” indicating the debt was not paid in full, as originally agreed.
Anytime you do not repay an account in full or as agreed in the original contract it will have a negative effect on credit scores.
Thanks for asking.
- The "Ask Experian" team