If I decide to use a debt consolidator to get out of debt-does that show up on my credit report? How long does it stay on it? Does it effect my score?

[roxette]

Hi swberry2

Welcome to the forums. Your thoughts of consolidating the multiple debts will give you positive results to erase all the unpaid accounts and achieve a debt free life.

If you wish to consolidate your debts through the debt consolidation program, the creditors will report your involvement in the program to the credit bureaus. Your report will show that you have been unable to pay the original amount but have accepted the reduced amount through the debt consolidation program.

Your credit report will show your involvement in the program as long as your accounts are not paid in full to the creditors. Once you have completed your payments, your creditors will report your accounts as "Paid in Full" to the credit bureaus and you will have distinguished imprints, thus enabling your credit worthiness.

The ultimate goal of the debt consolidation program is to improve your financial and credit standing and as long as you are current in the debt consolidation payments, you will be viewed more favorably than before.

Your credit earns the maximum scores when your payments are in full to your creditors. You will be able to see an increase of 20 points if not less. So, debt consolidation does not hurt the credit score, instead it is a means of repairing the bad credit in your credit report. Your credit file is the most important and prestigious financial document and every step should be taken to keep it clean in the vision of others.

Regards
Roxette