How long after a debt settlment program does your credit go up?

On average how long does it take? Once through the program if you compare 2 people, one with debt and high score. The other with %26quot;bruised%26quot; credit and no debt and almost high score which one is better?

How long after a debt settlment program does your credit go up?
This all depends on how you settle your debt...For example, closing an account when settling will bring your score down regardless of how soon you pay it off. In actuality, you can easily bring your score up in 30 days by doing a simple credit report cleanup. There are two links below to two great articles which can tell you step by step how to clean your credit, and how to strengthen it fast. If you don%26#039;t follow those steps, it can take as much as six to eight years to get your score up.





As to your other question, the high score person will always do better. What creditors look at is how many inquiries you have and how many late payments (%26quot;bruises%26quot;) you have. Someone with debt who pays on time is a good candidate for more credit.





Check out the articles below for credit myths that most people believe, and how to raise your score in 30 days.





Hope this helps.
Reply:If you have not already gotten into a %26quot;Debt Settlement%26quot; program...DON%26#039;T.





These are companies that you basically pay them instead of your creditor(s). Only when you have enough money in the settlement account will they negotiate with the creditor. The problem is there is nothing that requires the creditor to accept the negotiation. Also, since you have stopped paying the creditor you are in default. Once you are in default the credit card company can file suit against you for the debt. If this happens the defense %26quot;I was paying a debt settlement company%26quot; is going to go no where in the eyes of the judge.





Now, if score was the only factor the higher score would be considered better. However, the score is not the only factor in determining if you qualify for a loan. Another factor is the Debt to Income ratio.





If the higher score had a higher debt to income ratio, they may not be approved. However, the lower score might be approved(at a slightly higher rate) because they have a lower debt to income ratio. Again this all depends on the specifics of each and is not a general or absolute statement.

ginkgo