Posted on
May 26, 2009
at
8:02 am
Anyone know if this is the case?
Posted on
May 26, 2009
at
8:06 am
It depends on how you are consolidating your credit cards really. For example, if you are current on your monthly payments and you fall behind and try to settle your credit card debt, your payment history would suffer. Or, if you signed up with a credit counseling agency, it will be reported as such on your credit report. As a result, this has a negative impact on the perception of future lenders.
Posted on
May 26, 2009
at
8:12 am
Ok that help a little bit...but how bad really would settling your debts hurt your credit score? I mean, if someone has a good credit score why would they want to try and settle then?
Posted on
May 26, 2009
at
5:15 pm
A settled account will stay on your credit report for approximately 7 years. This, in the eyes and perception of a lender, is a negative mark to have because it demonstrates the debtor's inability to pay back the full debt amount. However, debt settlement is not as bad as bankruptcy, and the point of settling your debts is to avoid filing in the first place. Ultimately, it is impossible to identify how much exactly it will hurt your credit score, since so many factors are involved. If you owe a lot, I would not put your credit score at the top of your priority list. If the number one goal is truly to become debt free, the credit score has to take a back seat.
Posted on
June 1, 2009
at
12:29 pm
For your reference Ice Man, the FICO credit score compenents are as follows: Payment History: 35% Amounts Owed: 30% (Debt to Income Ratio) Length of Crdit: 15% Types of Credit: 10% New Credit: 10%
Posted on
July 23, 2009
at
2:09 pm
Does consolidating credit hurt your credit score if you enroll in a debt management plan?
Posted on
July 24, 2009
at
1:51 pm
To answer the question- does consolidating credit hurt your credit score if you enroll in a debt management plan?- not really, because you must remain current on your monthly payments while enrolled in a DMP. However, from a perception standpoint it does. The reason is because lenders tend to view a DMP in a similar light to a Chapter 13 bankruptcy, since the repayment terms are nearly identical between the two.
Posted on
July 27, 2009
at
4:41 pm
Does consolidating credit hurt your credit score if you just take out a loan?
Posted on
July 27, 2009
at
4:46 pm
Consolidating credit will not hurt your credit score if you are taking out a loan. However, if a potential lender pulls your credit report and sees that you have in fact taken out a loan- it may send out the signal that you are overextended. You can be perceived as a lending "risk" as a result.
Posted on
July 28, 2009
at
3:39 am
what abt settling a debt, how does it affect your credit score
