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Reply To: Settlement = Bad Credit?

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Landing Page › Forums › Payday Loans: General Questions › Settlement = Bad Credit? › Reply To: Settlement = Bad Credit?

June 7, 2019 at 1:45 pm #91690

realpdl
Moderator

Yes, it will. A debt settlement program can negatively affect your credit score initially. After you make the payment, your account balance will be brought to zero. But your credit report will show that the debt was settled for a sum that was less than the total amount due.

The fact that you have settled your debt can remain on your credit report for seven years.

However, if you make regular payments in the subsequent months and years for your other debts, your score will improve. Remember, it’s far better to settle a debt than not pay at all.

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