The meaning of “satisfied” and its affect on credit scores

Dear Experian,

What does satisfied mean on your credit report and does it help your credit rating?



Dear PST,

“Satisfied” is similar to the term “settled.” Both mean that you negotiated a lower repayment amount than originally agreed. Neither will help your credit history. In fact, both will almost certainly hurt it.

Any time you pay less than you originally owe on a debt, including interest, it will negatively affect your credit history and credit scores. The term “satisfied” indicates you were unable to pay the debt in full, which gives lenders concern that you might not be able to repay future debt, either.

Because the term “satisfied” represents lending risk, it will also negatively impact credit scores. Positive terms and phrases such as “paid’ or “paid as agreed” or “paid in full” are what lenders look for and that will have positive influence on credit scores.

Thanks for asking.

- The “Ask Experian” team