Debt Settlement and Credit Scores
Date: Thu, 10/06/2005 - 09:34
Thanks.
Oh I forgot this part...
I forgot to mention in my previous post that I have approached them on my own and am not being harrassed from a collection agency or anything of the like. I've never had a late payment to them or anything and am in good standing with MBNA. But my situation has changed and I will not ba able to carry on the full amount owed and want to avoid bankruptcy...so I took the initiative and am trying to head them off. Ok that's it.
JArrod
Hi JArrod
Hi JArrod
Welcome to the forums.
Similar discussion regarding this matter took place in the thread given below. Please read it to know the concept of a debt settlement3 program
http://www.debtconsolidationcare.com/forums/debt-relief.html
I realize that a "settlement" note will appear on my credit....but what does that do to my score and how does it affect me getting credit in the future? I'd rather go this route than bankruptcy I think.
Your credit scores are calculated by the credit bureaus on the basis of the information in your credit report. These credit scores are very important to ascertain how you will be paying your bills of the lenders. Credit scores are calculated on the mortgage, car loan, credit card, auto insurance that you have used and the rates of interest that have been fixed to you. So if the credit scores are the highest, you tend to get the lowest rates of interest and vice versa.
debt settlement is a negative remark and stays in your credit file for a period of seven years. When the lenders will review your credit file, they will understand that you have had tough times in making payments to your past creditors and have got the amount settled for less. This will put a bad impression on them and might be the reason of the credit being denied to you.
