Oct 06 2009
Does Debt Settlement Affect Your Credit Score?
Does debt settlement affect your credit score is a question being asked by many as we continue to struggle through the financial crisis? Many debt settlement companies claim that they can help you with your finances without damaging your credit score. In most cases this is simply not the case. If you have already missed payments on credit cards and loans then you have already damaged your credit score.
Debt settlement can though have some good effects on your credit score. For instance someone viewing your credit score after your debt settlement will see that several accounts will appear to be paid off. Yes of course debt consolidation creates a new credit account but lenders will consider the other accounts as paid in full. Compare your post debt settlement credit history to how it looked prior and there is no doubt that it will look improved.
It is simply amazing how few actually check their own credit report. Have you? Most do not realise how easy it is to access their own credit report. We live in an age where vast amounts of data are readily available and can be accessed online quickly and easily. The simple facts are that you can view your own credit report online for free as many companies will offer you a free trial.
It is always a good idea to check your credit score at least once per year. Sometimes mistakes can appear on your credit report and these can severely damage your credit worthiness. Mistakes though can be removed but of course you need to know they are there in the first place.
So if you have gone through a debt settlement plan and you want to know exactly how this process has effected your credit score simply view your credit score online yourself to find out.
Get your FREE ONLINE CREDIT REPORT NOW Get Your Easy To Get Credit Card TODAY. Article Source:http://www.articlesbase.com/personal-finance-articles/does-debt-settlement-affect-your-credit-score-1305129.html