Query: How Will Debt Settlement Influence My Credit Score?Answer: It’s challenging to predict just how several credit score points you are going to lose due to debt settlement, but we do know that debt settlement hurts your credit score.

FICO released FICO score loss info based on two hypothetical circumstances. In the situation, the person with 680 credit score (who currently had 1 late payment on the credit card) would lose in between 45 and 65 points right after debt credit card debt relief settlement for 1 credit card, while the individual with the 780 credit score (with no other late payments) would shed among 140 and 160 points.

Your credit score may well experience a equivalent drop if you have a credit profile comparable to these scenarios. See How Credit Blunders Hurt Your FICO Score for far more info.

Debt settlement will hurt your credit score much more if the credit cards you settle are currently in very good standing and if you credit card debt relief finish up settling several credit card accounts. Debt settlement data will remain on your credit report for seven years, but will have less of an impact on your credit score the older the information gets.

You can much better predict the influence of a late payment on your credit score employing the FICO Score Simulator, offered when you buy the FICO Regular product from myFICO.com. FICO Normal includes your Equifax or TransUnion credit report and credit credit card debt relief score.

Originally posted 2013-05-08 17:27:04.