How Will Debt Settlement Affect My Credit Score?
August 15, 2023
Debt settlement typically has a negative impact on your credit score.
The exact impact depends on factors like the current condition of your credit, the reporting practices of your creditors, the size of the debts being settled, and whether your other debts are in good standing.
A debt settlement arrangement can be an attractive option to eliminate debt that you cannot pay. However, it will most likely negatively impact your credit report, but it can let you resolve financial strain and start fresh. Here is what you need to know if you are considering a debt settlement:
- Why debt settlement can ding your credit score
- How debt settlements work
- What type of debt should I settle?
- Debt settlement vs. staying current
- How many points will my credit score drop if I settle a debt?
- Is it better to pay off a debt or settle it?
- Can debt settlement be removed from the credit report?
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