Credit Repair After Debt Settlement

Hello. I am considering debt settlement and I know that it is going to reflect or affect my credit in a negative way. Can you advice on how to repair my credit after I go through a debt settlement program? Thank you in advance.

Make sure that you get your debt settlement offer agreement in writing as proof that the creditor has agreed to accept how ever much that lesser amount-- to settle the debt. If for some reason you were unable to obtain a debt settlement agreement, it's as if the settlement did not take place...

Just to add to what x and y has said watch out for certain creditors-those who might give you a negative credit rating during the debt settlement process or after the debt is settled. Some of them might not update your credit report too as: paid.

I do not know which creditors have that reputation but the idea is that, if they ever sell the debt to collection agencies or junk debt buyers, you may have a hard time proving that you had a previous agreement with the original creditor. That's why it is important to document every step and transaction.

Have you chosen a debt settlement company yet? If not, feel free to fill out one of the forms on here and get matched up to the best one for you. It's free.

Credit repair after debt settlement is important for people who need to get back on their feet quickly. This would be the case for someone who is looking to get a mortgage or car loan and must improve their credit score to do so.

What you need to understand is that debt settlement impacts a person's payment history negatively (35% of the FICO score) while it imroves the person's debt to income ratio, or amount they owe (30% of the FICO score).

So, the best thing for a person to do in terms of credit repair after debt settlement is to take on new lines of credit (new credit is actually 10% of the FICO score) and to make sure all of the monthly payments are made on time!

If you are having trouble getting approved for a credit card I recommend trying to get a gas card or department store card, as these are very easy to obtain.

how long will a debt settlement appear on my cred report?

From what I am aware of, in order to qualify for debt settlement, your accts have to be delinquent--and a delinquency will remain on your credit report for seven years. As for a debt settlement, it pretty much will be reported as "settled."

Also beware of credit repair after debt settlement scams. Remember that only you can repair your credit by not falling behind on your payments again and by changing your spending habits. An increase in income would not hurt too.

Okay when repairing your credit, get your debt settlement agreement in writing. It is your proof that the creditor has agreed to accept the lesser amount to settle the debt. If you don't have proof, the settlement did not happen.

Next is for you to obtain a copy of your credit report. Check for errors. If there is an error, write the credit bureau(s) and have it fixed. You may also contact the creditor who reported the error. Some (nice) creditors will contact the bureau on your behalf.

And speaking of credit repair scams, be wary of any company that advertises aggressively or sends you  unsolicited promos in your  mail or e-mail

Oh..a lot of replies, thank you everybody. I appreciate it all.

Anyway, so after debt settlement, will I be able to apply for credit after I do all those?

Yes..although it may be a bit difficult. Creditors/lenders that would extend credit from a consumer that has gone through either bankruptcy or debt settlement may charge a higher than normal interest, but you really would not have much of a choice as you need a new credit card to start your credit repair. Make sure to have a good payment history with this new card.