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Suppose one has delinquency on credit cards that show R9 on the credit report. If he settles the credit card company with full payment, the credit report will show the status of settlement of full payment along with R9 (for about 6 years). How does this affect his credit report? In other words, can the status of the settlement of full payment improve his credit score? Can he get loans with this status?

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Not having a delinquent debt will improve your credit score somewhat, or at least stop dragging it down. But it may take a while proving that you don't intend to let that happen again before your credit rating improves enough for people to be happy lending to you.

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  • I believe that no lending is possible unless R9 (or R7) is removed from the credit report, is it right?
    – anon
    Dec 23, 2022 at 21:06
  • Depends on details.
    – keshlam
    Dec 23, 2022 at 22:27
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The best way is when settling with the credit card company, make them sign an agreement that neither of you will disparage the other, and that includes statements on a credit report. Then you have a contractual commitment from them that marks will be removed. Then they will stop reporting the R9 and it should fall off and you should have a clean report.

This agreement needs to be signed before you settle; after you settle they have no reason to agree to it.

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    @user103 7 years is my understanding. If someone were to settle for less than full amount, they could offer to settle for full amount in exchange for the removal of mark. The rationale for doing so is to eliminate income, since settling for full amount causes you to have taxable income for the forgiven amount. The creditor may say "sure, for a couple grand, easy money, I'll remove the mark". Get it contractually in writing.
    – Harper - Reinstate Monica
    Dec 23, 2022 at 22:36
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    @user103 If you have been told that, you are being scammed, or you are not in the United States. The "credit repair/counseling" business is a vat of sharks, because they know you don't have the resources to sue them.
    – Harper - Reinstate Monica
    Dec 24, 2022 at 5:05

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