You are currently browsing comments. If you would like to return to the full story, you can read the full entry here: “If in a debt consolidation program, is your credit score affected?”.
-
Archives
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
-
Resources
-
Meta
ABDUL
If you responsibly pay down your debt and do not declare bankruptcy, you will rebuild your credit and be fine.. My daughter did it and now has a high 700s score and owns her own home.
GREGORIO
It completely depends on your agreements with the agency assisting you and your lenders. If the agency appears on your credit report, it can often have a negative impact on your file; although, it may not directly impact your score (lenders look at more than scoring).
Most debts can be negotiated directly with the lenders – this is the method we suggest to most of our struggling clients. The key is to increase available lines of credit and lower the interest rate. This combination has an immediate and long term positive impact on your credit file as a whole.
Ultimately, you’ll want all of your balances to be less that about 40% of the total available. If you cannot achieve that by lowering the balance, you may be able to achieve it by increasing the limit. This often allows you to apply for additional credit (most people view this as a negative thing; however, if you are able to move larger balances over three different accounts, without ‘maxing’ them out – you will repair your credit immediately and still owe the same. In addition, most ‘new accounts’ offer 0% interest on all balance transfers).