Or do I have to do something else in order to get a better raiting?
2006-11-20 08:04:27 · 3 answers · asked by Anonymous in Business & Finance ➔ Credit
Not neccessarily. (1) Hopefully, you have a credible debt consolidation team that doesn't hold back your first payment as a fee. If they do, then your other accounts will receive another late payment which will hurt your credit. (2) The debt consolidation will close the other accounts which will make your average account age look shorter which will hurt your score. (3) You now have a new account (the debt consolidation loan) which also hurts your score since it is new (4) the consolidation company cannot legally erase bad credit so your other accounts will still be on your credit report until the 7 year limit is up. Your credit will eventually improve if you make your consolidation payments on time and even more once you owe them less than 30% of the original amount you borrowed from them. Give it sometime and don't get frustrated, it will take some time and you'll get there (just not overnight).
2006-11-20 22:10:19 · answer #1 · answered by Mariposa 7 · 0⤊ 0⤋
You have to start rebuilding your credit rating from scratch. You can't expect relistically to resume where you left off, prior to going into debt and were unable to make credit card payments.
2006-11-20 16:08:32 · answer #2 · answered by WC 7 · 0⤊ 0⤋
Not necessarily. You will then need to start building good credit to help you from the bad that you had.
2006-11-20 16:07:56 · answer #3 · answered by spool 3 · 0⤊ 0⤋