debt settlement and credit score
Date: Wed, 07/22/2009 - 13:26
My question is, if I go 60-120 days late on above 3 cards and then try to do debt settlement, will my credit score tank to the point where I wouldn't be able to get a mortgage refi in a couple years? How much does your score typically go down when you are late with payments? I currently have a 674 credit score due to high balances, but no late payments or other negatives.
Any
First of all, before you negotiate for debt settlement, you shou
First of all, before you negotiate for debt settlement, you should stop making further payments for a period of 150 to 180 days. Now, once you become delinquent with your payments, it will get reflected in your credit report and may lower your credit score. So there is every possibility that your score may go even below 600.
If you are concerned about your credit score than you should rea
If you are concerned about your credit score than you should really reconsider debt settlement. No one can say for sure how low your score will go, but with high balances and 6 months of no payments you will most likely go below 600. With $35K you should be able to settle them all at the 180 day mark and then work to repair your credit. In 2-3 years it SHOULD be OK, but no one can say.
Now, my question is: with $35K why don't you pay off the high interest cards / balances and use a debt stacking approach to pay off the rest? This will save your credit and keep you in good standing with your creditors.
