Tag Archives: credit score

Will Credit Card Debt Settlement Affect My Credit Score?

Posted by on April 22, 2011 No comments
Because settlement is not a magic solution and it happens in real life, it will definitely have an impact on your credit score. This should come at no surprise to people who have been around the financial world for a while. Every single little thing that you do can come back to haunt you on the credit report. The more comforting side of this is that every good thing you do will also show up on the credit report and it will contribute to a good credit score. Settlement is one of those things that many people don’t understand completely, so they often offer opinions on it that are simply erroneous. 

Settlement does bring your score down some

Know that going into the process, settlement will bring your credit score down initially. When it is reported that you have settled, this will not escape the view of the credit reporting agencies. But how much of an impact will it have? That is the more important question and it is what people are asking more and more. Settlement will not have a huge effect because it also brings about some positive changes on your report that will counter the negatives. These changes have to do with total debt amounts and the ratios of available credit to credit used.

When you make settlement your chosen path, things even out to a point, because settling knocks off a monster amount from your credit report. Some people use the process to get rid of $10,000 or more in debt, so you can see how that might be a positive for your score. The creditors who use your report to gauge their risk will much prefer a person who has less debt, but has that little smudge on their credit report, over someone who still owes tens of thousands of dollars all over the place.

Credit card debt settlement provides a measure of finality, as well. It is something that will bring you to the point where you are able to move on and start all over. Starting new might seem like a good thing to so many people who have run into bad luck in their financial life. With no more collection calls and only good decisions in the future, rebuilding your credit score and starting out on a new path is a reasonable expectation. This will bring good tidings and top notch scores, as well.

what are the consequences of not paying off credit card debt?

Posted by on March 9, 2011 5 comments
Penny H asked:


My family and I had an unplaned birth, and our now overwhelmed with medical expenses and the new expenses from the child. Since we did not have health insurance we became overwhelmed with bills. Over the last couple of years we have fallen progressively farther behind on our credit card bills. We have not made a payment on some of the cards in over nine month. Utlimately, besides lowering our credit score, is the consequences of not paying the cards. Can the creditors take our vehicles? Take money from our bank accounts? Garrnish our wages? We are very worried about our debt and would like to pay the debt off, yet feel very intimidated by the whole process. Thanks for any help

Reed

Credit Card Debt Settlement Effect on Your Credit Report

Posted by on September 20, 2010 No comments
Hector Milla asked:




Most people see their credit report as being some sort of evil necessity. Instead of helping them, it is a force devised specifically to hurt their chances of getting a loan or any sort of further financing. Though this is a fair statement for many, it does not have to be that way. There are some ways to get out of debt that don’t hurt your credit all that much. One thing that will almost destroy your credit is to stay in debt too long. If you are maxing out cards and simply paying the minimum, then chances are quite good that you will wreck your credit. When getting out of debt, many people want to know just how debt settlement impacts their credit report.

Settlement is a bit of a hard nosed strategy for getting out of debt. While most people sit around and pray for good luck and pray that they will be able to make the payments this week, some folks take action. They settle their debts directly because it costs less to do so and it gets them free of the chains associated with bad consumer debt. These people might suffer a little blip on their credit report in the short term, but the long term benefits make it a good investment.

In the short term, the effect on your credit report is that it will be noted there for all to see. Future creditors will see that you have settled for less than the total amount owed and your credit score will drop a little bit. Still, your credit score will be coming up as a result of having less debt and you will save yourself the harmful effects of missing payments and making payments late. As soon as you settle your debts, you will be working to separate yourself from the ugly aspects of your credit report. Every day that passes will be one more between you and your past.

Ultimately, settling your debts can have a positive effect on your credit score. It is a much better plan than wallowing in the minimum payment madness that can take over your life. At least with settlement, you will be free of the worry that typically goes along with collection calls and things of that ilk. Taking action now has worked for many people and if you are sharp, it can work for you, too.

Marcus

Avoid Becoming A Slave To A Credit Score Again Through Debt Settlement

Posted by on September 17, 2010 No comments
DebtSettlement911 asked:


GetOutOfDebtInAYear.com teaches you how to avoid becoming a slave to your credit score again after overcoming your traumatic financial event through credit card “Debt Settlement.” If you are considering Bankruptcy or Debt Consolidation, you should learn about the credit card Debt Settlement option.

Fred

How much debt can I incur on my card without getting my lines of credit lowered?

Posted by on September 3, 2010 5 comments
charlotte q asked:


I have no credit card debt and an an excellent credit report. I am going to do a small remodel on my rental property and plan to use my Home Depot card with no interest no payment for 12 months. I plan to use a few other cards as well. I thought that 30% is the best to load on to each card to maintain my credit score. Am I correct?

Danny