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.
With our credit repair program we are able to work with you settled accounts to ensure that they are reported correctly and in most cases removed from your credit reports altogether. This will improve your credit score instantly so that in the future you are able to qualify for prime interest rates on things like a mortgage and auto loan. We will also help you get secured and unsecured credit cards to help build up new positive credit history fast. If you have been forced to settle an account in the past or just have negatives on your credit report give us a call at 888.799.7267 and we will have an expert credit analyst pull your credit report and devise a 6 month repair plan just for you.