| It seems as though individuals and families seeking | | | | afloat. In situations like these, people notice that their |
| some form of debt relief are seeing a significant | | | | credit score may fall below 700, sometimes dipping to |
| amount of information regarding credit card debt | | | | as low as 500 during the delinquency period that is |
| settlement. Obviously, this form of debt relief (like all | | | | required to negotiate with creditors. After all of your |
| others) has some critics, which leads to at least a little | | | | accounts are settled, and reflecting zero balances, |
| skepticism amongst consumers who might be | | | | however, you'll see your credit score increase and |
| considering debt settlement. | | | | reach a level which is considered to be high enough |
| One of the most common questions that are asked of | | | | for credit approval on an auto loan or home mortgage |
| debt settlement is whether or not it will have a | | | | within 9-12 months. |
| negative impact on your credit score. The answer is | | | | Those individuals whose accounts are already |
| yes, no and maybe. You see, each person's situation is | | | | delinquent will likely not see their credit score negatively |
| different, so depending on your own personal financial | | | | impacted due to debt settlement. Rather, those who |
| status, credit card debt settlement may have a | | | | fall into this category will find that their credit scores will |
| negative impact on your credit score. | | | | increase significantly after all of their accounts are |
| If your bills are always paid on time each month, and | | | | settled and reflecting zero balances. Let's face it - |
| your credit score is relatively high, I can say with a | | | | delinquency is what really impacts a credit score, so by |
| great deal of confidence that your credit score will be | | | | remedying this delinquency, whether through full |
| compromised by the time your accounts are settled. | | | | payoffs or reduced debt settlement payoffs, your |
| Most people who are paying their bills on time, but are | | | | credit score has nowhere to go but up. |
| seeking debt relief, do so because they tend to find | | | | In summary, depending on your personal financial |
| themselves borrowing from one creditor to pay | | | | situation, your credit score may be negatively affected |
| another in an effort to keep their finances afloat each | | | | by debt settlement, or this process can have a positive |
| month. Unfortunately, by doing this you're really not | | | | affect. Again, this all depends on your own financial |
| keeping your finances afloat; rather, you're getting | | | | situation. Debt settlement has helped many individuals, |
| yourself deeper in debt. Your credit score might | | | | families and small businesses to avoid bankruptcy and |
| appear to be okay, but overall your finances are | | | | or years of paying high interest to various creditors. |
| lacking the type of stability that is needed to truly stay | | | | |