[debtquotes]

After consolidating debt how long does it receive to observe a raise in credit score?

I think it takes minimum Two years to see a boost in your credit score so It's true ??

please share your opinion here..

[Cris]

If your accounts are slightly or significantly delinquent at the beginning of the Debt Settlement program, then making settlements is going to have a direct improvement on your credit score because it will show that these accounts are resolved and you are fulfilling your obligation.

If your accounts are current at the beginning of the Debt Settlement program, then your credit will decline during the program as the accounts go delinquent and then as each one is settled, your credit should improve.

The positive effects on your credit report is that your future ability to pay goes up and the late marks can generally be removed from your report after Debt Settlement is done with credit restoration. Take in mind that a settlement means that you have paid back an agreed amount to the creditors, you are not avoiding the obligation, but obtaining a more manageable amount for you to pay back because different circumstances and hardships prevented you from paying the full amount. With credit restoration, your credit can be normal again within 12 months, without it, it could take around 2 years for your credit to start improving any further even after the Debt Settlement is done, at this point you will receive credit card offers once again, since you are no longer in debt!

[counselors]

If your accounts are slightly or significantly delinquent at this point then making settlements
is going to have a direct improvement on your credit because it will show that these accounts are resolved.

If your accounts are current at this point, then your
credit will decline during the program as the accounts go delinquent and then as each one is settled, your credit should improve. The positive effects on your credit report is that your future ability to pay goes up and the late marks can generally removed from your report after settlements are done with credit restoration.

And a settlement means that you have paid back an agreed to amount to the creditors.

It is important to note here:

From a creditor's perspective, your ability to pay back a loan is a big factor. By reducing the current debt load with a settlement plan you effectively work to increase your ability to pay back that large loan.

To use an example if your current debt payments are $3,000 monthly, and you apply for a large loan (say a mortgage) then the creditor doesn't just look at your credit rating. They also look at your ability to make the new payments. Even if your credit is perfect, without the ability to pay back the loan, you will likely get declined.

If you have a large debt load now, then settling that debt will help you to increase your ability to pay back that large loan (or even pay cash for your purchase) in the future.

CG

[DebtEliminationDon]

After I negotiated my business credit debt and did a Deed In Lou of Foreclosure I had two deragatories on my account - one of my settled business accounts and the DIL. It dropped my score 100 pts, which I expected worse. It has been 8 months since both of these events happened and my credit score has risen 50 pts.

I just started to repair my credit. I figure it will take me 3 to 6 months. With only two items I am thinking closer to 3 months.