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Re: Revoke vs. Settlement


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Posted by Linda on February 09, 2002 at 02:17:33:

In Reply to: Re: Revoke vs. Settlement posted by Anonymous on February 08, 2002 at 21:47:55:

No, a credit card company's hardship program is not as detrimental to your credit as a settlement - charge off. If would be "account closed by creditor" which isn't wonderful, but nowhere near as bad as the charge off you would have if you settled.

On top of that, the charged-off amount (what you didn't pay) would be sold to collection agencies and they will chase you forever, messing with your credit all the time.

Many times, after finishing your payments on their "hardship" program, if your situation improves, the same card company is happy to give you back your account priviledges.
My guess is that this card company pays their collection people commissions or bonuses on what they collect each week or month, and this person was trying to get you to settle for that reason.

If you qualify for the hardship program, take it!! The same company will help you rebuild. Good credit card companies do this. This is what we want, this is what we are fighting for. It isn't perfect or wonderful, but it isn't "credit hell" either. It's fair.

Linda


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