National Student Loan and Credit Report Debt Attorney

Can Your Credit Score Actually Improve via Debt Settlement?

Rate this post

http://www.huffingtonpost.com/laura-adams/7-credit-score-lies-that-_b_1328254.html

Although Laura Adams makes some great points about what she coined “credit scores lies,” I have to point out that “#6” and “#7” on her list aren’t lies and she’s pretty much wrong. (This is why it’s important for people to not rely solely on the internet for information and to verify the accuracy of the information that they read!)

Regarding #6, there are credit repair professionals that can absolutely help you raise your credit score. Her statement, “if someone offers to raise credit score for a fee, just walk away” is too broad and could make you miss on an important opportunity to raise your score fifty to hundred points as quickly as possible (which she failed to mention can be as quick as a three to five months.) A credit repair specialist would also counsel you as what exactly to do to help your score even more in the long term (which can be as long as one to three years depending on how bad your credit is to begin with.) A better statement would be to be careful and research your credit repair person thoroughly before handing over any money.

Adams’ statement in #7 is inaccurate according to our sources.  What lowers your score is not paying your bills on time.  Settling for less than the amount due does not lower your score; in fact, our sources tell us that settling a debt for less than the amount owed is far better for your credit score than showing the amount as past due and unpaid. Moreover,  making making minimum payments on your credit cards over an extended period of time is bad for your credit score, too.  In our opinion, the first step in rehabilitating your credit score is getting out of debt. Then there’s the other point Adams’ fails to mention:  banks don’t loan money anyway if you’re maxed regardless of your credit score.  Why not? Being maxed out is a red flag.

The better advice would be to not pay thousands of dollars in balance and interest to save a credit score that can do nothing for you. And like Adams’ does correctly mention, as old negative credit accounts age, they mean less and less in the credit score equation.

Can Your Credit Score Actually Improve via Debt Settlement? was last modified: March 9th, 2017 by Kevin Fallon McCarthy
The following two tabs change content below.
mm
Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.
mm

Latest posts by Kevin Fallon McCarthy (see all)

START NOW
Call 855-976-5777 or Chat Now
  • How much do you owe?
    Select your approximate debt.
    Less debt
    More debt
  • The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.