I was just wondering if this type of debt consolidation ruined my credit score?

[Vikas]

I was just wondering if this type of debt consolidation ruined my credit score

A very classic question Krista

Yes it does if your credit report says "settled" .

No if you can bargain for your credit report status and make it "paid" or "paid as agreed".

Never forget to negotiate for your credit rating and its based on a simple theory,

Creditors are Good People; they earn money by making debtors pay as much as possible, not by ruining their credit score.

Regards from Vikas's Side

[Jason]

Dear Krista,

Welcome to the debt consolidation care forum. This is a smart query on your part and we will try to help you with the most authentic solutions.

The fates of your credit score depends on how well you can convince your creditors and have a reasonably beneficial debt settlement with them. Make sure to negotiate on your credit ratings till the last moment. Remember your creditor's main concern is to retrieve his money from you and not to give your account a negative marking.

Thus it is your main concern to make your account status as "Paid as Agreed" or "Account Closed- Paid as Agreed". These two are ideal ratings for your account and enhances your credit score. If you fail to get this rating in any case, make sure your account is rated as "Unrated" or "Paid". In all measures try to avoid getting the status of "Settled" for your account. This is a negative rating and hampers your credit score to a great extent.

Remember, that if you commit to the creditor to pay your fees regularly there is a high chance that they will rate your account well. Their main concern is money and not any personal bias to mark you negative.

Hope you participate more often in our forum and share your experiences and insights with the other members. We look forward to see more active participation from you in the coming days.

Regards,
Jason

[MONEYMOVE]

It does ruin your credit-even after your debt is paid! Then you have dispute it- I only did it for 8 months, you miss a payment then the creditors drop the plan, some continue to charge late fees- to much work!

[Jason]

Hi MONEYMOVE,

Welcome to the debt consolidation care forum.

It does ruin your credit-even after your debt is paid! Then you have dispute it- I only did it for 8 months, you miss a payment then the creditors drop the plan, some continue to charge late fees- to much work!

Remember to make regular payments once you are on the process of settling your credit rating. You need to be extremely diligent to rebuild the trust factor for you in the minds of the creditors.

If you have any disputes in your credit report, approach the credit bureaus and request them to solve it.

The Fair Credit Reporting Act codified at 15 USC sections 1681a through 1681t, provides the framework designed to help you eliminate erroneous or unfair credit information from your credit report.

In order to waive off your late fees negotiate wisely with your creditors. Build a rapport with them and explain to them your financial difficulties. Now in all probability your late fees will be eliminated.

to much work!

Yes, there is too much work to be done, but remember taking wise and calculative steps will save you from a lot of extra work and always put you in a better position.

We would appreciate if you visit our forum more often and share your views and experiences with the other members.

Regards,
Jason