I am in the process of clearing up my credit. I cannot pay off the original amount but however I am looking into the possible settlement option. Will this boost up my credit scores? Will this effect my chances to obtaining a mortgage at a reasonable rate?

Hi

Settlement program will not repair your bad credit. Instead it will worsen your file. It is often considered to be the last resort before filing bankruptcy. Needless to say that a negative remark enters your credit file for a period of seven years and it causes regular damages.

Please do have a look at the following article and understand the importance of choosing a consolidation program instead. Consolidation program will improve your credit file by making regular payments to your past debt. Once the accounts are paid off, there will be an increase in your credit scores.

http://www.debtconsolidationcare.com...omparison.html

I suggest you to take a free counseling here and know more about your repayment options.

Hi zetadream4

Welcome to the forums.

The three digit credit score is the most important factor to analyze your financial worthiness. Based on these credit score, loans or credit can be acquired from the creditors and other lending agencies. When the credit score is evaluated, extensive research is conducted on the following areas of your credit report.

• Your payment history is analyzed.
  
• The amount that you owe is taken into consideration.
  
• Length of your credit history is determined.
  
• They look out for the types of credit that you have used so far.
  
• They will look into your new credit.

Since settlement program lowers the credit scores, either the lenders will not be willing to extend new credit to you or they might charge high rates of interest at the loan amount. So, you need to be very careful in choosing the perfect package for repairing your bad credit.

Regards
Roxette

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Debtconsolidationcare offers free counseling and help, please avail the services before taking any major decisions.

I owe 2100 on a hospital bill and it's been turned in for collection and the are offerring a settlement for about 1400. If I take the settlement will it hurt my credit?

As I understand credit reports:
-A paid in full debt will look best on your CR.
-A settled in full debt will not look as good.
-An unpaid debt will look worse.

Perhaps you could try negotiating for a better mark on your CR or even a deletion. Make sure any settlement you are offered is given to you in writing.

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The only people with whom you should try to get even are those who have helped you.
-John E. Southard

My debt consolidation company told me that by placing my credit cards into the debt consolidation program, it would not affect my credit. Instead, it will help bring my interest rates down. At least, that is what the company told me.

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The Best Way To Be Is Debt Free
and Alexandra is becoming free!

Going through debt settlement in the begininning of the program does have a negative effect on your credit score. However at the end it does improve. One third of your credit score is made up of your debt to credit ratio and after you pay off your debt that portion brings it up. When you first start the program you do take a hit on your credit due to the fact that your payment history accumulates negatives. Your payment history makes up about one third as well. However you payment history is only made up of the most recent 24 month credit history you have. So after 2 years those negatives you have accumulated greatly diminish in their negative value on your report. My recemendation is if you want to save yourself thousands then settle your debt and at the end of the program hire a reputable credit repair agency to dispute and remove the negatives from your CR and within a few years your debt will be gone you wil, have saved thousands and with cleaning up your credit your score will go up drastically due to the repair agency and your debt being paid off.