If you have landed on our site it probably means that you are looking for Learn More
The Impact of Debt Settlement on Your Credit
A debt settlement can relieve you of a massive burden. When you settle a debt, collections calls stop. Your stress level plummets. And most of all, you get rid of a debt that you can't pay for far less than you owe. This frees up room in your budget to pay other bills or take care of needs for yourself and your family. However, before you go into a settlement agreement with a creditor, you should understand how a settlement can impact your credit score.
Before a creditor will even entertain the idea of a settlement agreement, you must be very delinquent in your payments. A typical rule of thumb is 180 days late. This will cause your credit score to shoot down drastically. Once you enter into a settlement agreement and pay the debt off, your creditor has to report the status of your account to the three major credit reporting agencies: TransUnion, Equifax and Experian. The account will become a negative entry on your credit report and this negative entry will remain on your credit file for seven years from the date you became delinquent on the account. It will impact your score the entire time it is on your credit report.
If you are dealing with blemishes on your credit report, retain the services of a credit repair professional. We have provided a list of the top ranked credit repair companies in the United States for you to browse and find the best one to help you achieve your financial goals.