Category: Ask a Trustee asked January 27, 2014
I currently have a car payment with a balance of $1,686 or 4 months left to pay. I was offered a settlement of $605.74. If I do decide to settle which is very tempting to save money, will this affect my credit rating?
Hi Sue Ann,
The general answer is “yes” – if you alter the payment terms of the agreement you signed under your loan or lease agreement it will affect your credit rating. If you don’t want your credit rating to be affected, you should continue to make the payments you agreed to under your loan/lease agreement.