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Does paying off a settlement on your credit card balance harm your credit rating?

Asked by cletrans2col (2395points) August 17th, 2011

I have a credit card balance that recently went to collections. They sent me a letter offering to let me pay half of the total and they will notify the CC company that it is settled. Of course this is an awesome deal, but I want to know if there are possible negative effects it will have on my credit rating because I will only pay part of the total.

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