Paying off credit card question

[Freddy Jones]

I have a $4600 balance on a closed credit card account. It's taken me a few years to whittle it down from $11k. I'm about to pay it off. But first, Is it a common practice to offer the card company less, say $3800, to see if they will "forgive" the rest of the debt balance? If so, and they agree, will it hurt my credit score?

[Petunia 100]

I have a $4600 balance on a closed credit card account. It's taken me a few years to whittle it down from $11k. I'm about to pay it off. But first, Is it a common practice to offer the card company less, say $3800, to see if they will "forgive" the rest of the debt balance? If so, and they agree, will it hurt my credit score?

If they agreed, yes it would hurt your credit score. Also, any amount forgiven would be taxable income to you.

But they are not likely to agree. Charge off agreements are typically offered to those who are delinquent. If you're paying monthly, they really have no incentive to accept less than the amount due. A lump sum is only an incentive if repayment is uncertain. They prefer you to make minimum payments; that is how they make money.