Posted on: 19th Oct, 2012 12:31 am
I'm 8 months late on two 2nd loan on two separate properties. Both are not showing up yet as "charged off". I want to settle these loans some time down the road. Until then, does my score continue to get worse, or does it stop getting worse after a certain point? Perhaps even it begins to get "old" and starts improving with time? If I end up settling, I understand it will then show up on my report as "settled for less than full amount" or something similar. Does that notation make my score worse than it was before settlement, or better? Thanks so much for your help.
Hi Guest,
Initially, when you settle a debt for less than the full amount, then it might lower your scores to some extent. But with time, your scores will get improved as you have paid off the debt.
Take care
Initially, when you settle a debt for less than the full amount, then it might lower your scores to some extent. But with time, your scores will get improved as you have paid off the debt.
Take care
Hi Guest,
I agree with what Sara has said. A debt settlement will initially have a negative impact on your credit scores. But with time the scores will improve as the debt has been paid off. Also, your future creditors will consider this as a positive thing on your credit report as they will find that you have been responsible and paid off as much debts as possible.
I agree with what Sara has said. A debt settlement will initially have a negative impact on your credit scores. But with time the scores will improve as the debt has been paid off. Also, your future creditors will consider this as a positive thing on your credit report as they will find that you have been responsible and paid off as much debts as possible.
Yes, I agree with above two. Delay in repayment of debts will affect the credit score but you can actually improve it with time...repayment on time. :)
