Debt Consolidation and credit score

Hi Hayley,

Welcome to the forums. debt consolidation can help to improve your credit score in the following ways-

• After a few subsequent payments towards your creditors, your accounts are marked as current in your credit report.
  
  
• Once your pay off the total debt the account is marked as ???Paid as Agreed??? or ???Paid in Full???, which is considered to be a positive sign.

Hi Hayley

Welcome to the forums. If you are considering for debt consolidation program, you are seeking to improve your financial standing. Your credit report might be having some negative entries which need to be recuperated. Debt consolidation program will cover all the unpaid accounts in the program, making regular payments to the creditors and as a result provide you a better financial rating.

Debt consolidation program will be shown in your credit report and your creditors will appreciate that you have taken this responsibility to clear off your past debts and regain your financial worthiness. They will come to know that you have experienced financial difficulties in the recent past and you have taken active steps to repair it through the debt consolidation program.

Your creditors report your accounts to the credit bureaus. Although your report will show that you have been unable to pay the original amount of the creditors and have accepted the reduced amount through the debt consolidation program, the consultant working in the debt consolidation program will be able to negotiate with your creditors for the best of your credit ratings.

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.

Regards
Roxette