Does settling a credit card debt put a red flag on your credit like a bankruptcy?
Andras asked:
Well, the question is pretty straightforward. I know the credit takes a dive, but does it also mean that for 5-7 years (or forever) there will be a permanent blemish on my credit?
Thank you.
Thank you for the answers. The problem is I cannot continue paying, otherwise I would not be thinking about it. I lost my job in the US, and presently am enrolled in a graduate school working on my PhD in England… The stipend is not exactly high. So I really have limited options.
Ann
Well, the question is pretty straightforward. I know the credit takes a dive, but does it also mean that for 5-7 years (or forever) there will be a permanent blemish on my credit?
Thank you.
Thank you for the answers. The problem is I cannot continue paying, otherwise I would not be thinking about it. I lost my job in the US, and presently am enrolled in a graduate school working on my PhD in England… The stipend is not exactly high. So I really have limited options.
Ann
Tags: Bankruptcy, Job, Phd
June 12th, 2011 at 10:10 pm
If you settle your debt it’s not as bad as bankruptcy. However, bankruptcy isn’t as bad as people think. I had to file 6 years ago, due to divorce then lay off then medical expenses. I was able to buy a house and a truck 4 years later. My credit score is now above 700 and that is with a bankruptcy within 6 years.
June 15th, 2011 at 5:54 am
It will not affect as like for bankruptcy but not a good record for your credit score. I suggest you should continue it & not to use it or pay it every month to avoid interest charges.
June 16th, 2011 at 3:17 am
Yes, it’ll mean a blemish for quite some time, however it’s affect on your credit score diminishes over time. It is no where near as bad as a repo or a bankruptcy as settling a debt shows you care enough to make an attempt to pay your creditor
Continue good consumer practices and let time heal the wounds.