2007-06-25 08:17:49 · 3 answers · asked by Kerv 2 in Business & Finance ➔ Credit
Debt consolidation won't afversely affect your rating. Debt settlement will.
2007-06-25 09:00:42 · answer #1 · answered by Jack 6 · 0⤊ 0⤋
Debt settlement will temporarily ruin your credit while you are waiting to settle.. Since you aren't making regular credit card payments your fico will go down.. You pay the settlement company a monthly amount depending on what you owe and it goes into a trust that is then used to settle and account when the company is ready to settle which can be anywhere from months to acouple years depending on how much you owe... During this time you DO NOT open any more new charge accounts... Once the settlement is made your credit will improve slowly... Depending on your situation... It's better than bankruptcy.... If you need information go FreedomDebtRelief.com Good luck
2007-06-25 08:28:38 · answer #2 · answered by pebblespro 7 · 0⤊ 0⤋
Debt Settlement, affects your credit report temporarily. Debt Consolidation shows up right on your credit report, and sometimes the company has late payments to your creditors and this will also affect your credit.
Any program that you enter to help you pay your bills will affect your credit
2007-06-25 08:31:37 · answer #3 · answered by Anonymous · 0⤊ 0⤋