When you agree to pay a settlement you are in effect agreeing to pay off the debt at a discounted amount.

Paying your debt this way should have the same impact as paying off the original amount because your lender has agreed to forgive some of the balance in order to help you pay it off.

🧑‍💻Does paying a settlement affect my credit score?

Paying a settlement offer should not have any additional impact on your credit score, and should have the same outcome as paying the original owed debt.

When your account is passed to us it is likely that any negative impact to your credit score will have already occurred, but some lenders may default you if you do not engage with us once your account has been passed over.

Paying off your balance may positively impact your credit score, but it is best to ask your lender to be sure of the consequences, or check the Ts&Cs of your original agreement.

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