credit report after using the settlement program

It depends on what the debt settlement company worked out...sometimes they get the creditors to say 'paid in full', but alot of times it is going to say 'paid settled', which will make companies aware that you settled the debt for less rather than paying in full.

MichaelB,

When you are looking for some debt management programs, be sure that you make your decisions keeping your credit in view for the future. Settlement programs with the status 'settled' have a negative impact in your credit report for 7 years. This will make the scope of getting new credit quite tougher. TMD said right, the lenders will know that due to some financial problems and maybe due to irregular payments, you got the amount settled.

However, you can opt for consolidation program that has a better impact to your credit. This program will appear in your file as long as you are using this program. Once the accounts are paid, they will be surely shown as 'paid' or 'paid in full' Each of them is good to your credit because you have paid what you owed.

Besides, consolidation programs have many benefits attached with it. The late payment fees are eliminated from the total amount. If you have multiple bills, you can combine those accounts that are becoming hard to roll on the payments.

Read the thread below as it helped me to understand the actual difference between the two programs.

http://forums.debtcc.com/forums/comparison.html