It seems as though individuals and families seeking some form of debt relief are seeing a significant amount of information regarding credit card debt settlement. Obviously, this form of debt relief (like all others) has some critics, which leads to at least a little skepticism amongst consumers who might be considering debt settlement.

One of the most common questions that are asked of debt settlement is whether or not it will have a negative impact on your credit score. The answer is yes, no and maybe. You see, each person’s situation is different, so depending on your own personal financial status, credit card debt settlement may have a negative impact on your credit score.

If your bills are always paid on time each month, and your credit score is relatively high, I can say with a great deal of confidence that your credit score will be compromised by the time your accounts are settled. Most people who are paying their bills on time, but are seeking debt relief, do so because they tend to find themselves borrowing from one creditor to pay another in an effort to keep their finances afloat each month. Unfortunately, by doing this you’re really not keeping your finances afloat; rather, you’re getting yourself deeper in debt. Your credit score might appear to be okay, but overall your finances are lacking the type of stability that is needed to truly stay afloat. In situations like these, people notice that their credit score may fall below 700, sometimes dipping to as low as 500 during the delinquency period that is required to negotiate with creditors. After all of your accounts are settled, and reflecting zero balances, however, you’ll see your credit score increase and reach a level which is considered to be high enough for credit approval on an auto loan or home mortgage within 9-12 months.

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R1s, inquiries, charge-offs. What do these terms mean, and what do they have to do with knowing how to read a credit report? Well, in this article we help you understand a very this important document.

If you’ve followed our articles so far, it means you’ve decided to get your free credit report, and are most likely looking at it right now.

But most people that receive their credit report simply stare blankly at the myriad of numbers, abbreviations, and somewhat alien terms. What does it all mean? What’s a trade line, a charge-off, or an account review inquiry?

As we now know, there are three primary players when it comes to credit reporting bureaus in the United States. In no particular order, they are TransUnion, Equifax, and Experian. Once annually, you are entitled to a free copy of your credit report from all three agencies.

Let’s make this very clear up front. There really is no point in looking at only one of the agency reports. You really need to obtain and look at all three. A common mistake that most people do, is they pull one credit report from one agency, and assume that the information is the same on all three. This typically is not the case.

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