|
|||||
|
|
|||||
 |
When a revolving
account becomes past due, typically over 180 days, the account
is “written to profit and loss” by the creditor. This
is lender lingo for what is also known as a “charged-off
account” or “charge-off”. This profit and loss
status or charge off status is reported to the 3 credit bureaus.
It doesn’t
matter if the “charge off” occurred prior to enrolling
into a settlement program or occurs after enrolling into the program,
a charge off is a charge off no matter how you cut it. The delinquent
status and subsequent charge status will be reported on your credit
file, in either case. Creditors report monthly payment history
using number – it is a little confusing because one credit
bureau uses 1 as current and paid as agreed, while another uses
0 as paid as agree. 1) Good
credit is important to you 2) You
have the means to pay off your debt in full by making required
monthly minimum payments 3) You
can afford the high interest charges associated with paying off
unsecured debt. While debt settlement will adversely affect your credit score, there are many factors that influence your overall credit. In addition to your credit fico score (a number between 350 and 900) another major factor in determining your credit worthiness is your debt to income ratio. If you are maximized on your credit lines and your debt to income ratio is out of sight, you are most likely not bankable – therefore, in many cases, even having a great credit score is not as valuable as it may seem. Therefore, you must liquidate your debt in order to get your debt to income ratios in line. Either way, you may have credit problems. So the question might be, how do you want to resolve the problem? Contact
our Professional Staff Today! |
||||
If
you have perfect credit, or even slow credit, Debt Settlement
will derogatorily affect your credit. If however, you already
have accounts that are over 4, 5 or 6 months past due, it may
not affect your credit any worse than it already is. 
Over
60, 90, 120, 150 and 180 days, charge-offs and written to profit
and loss, are all considered derogatory credit remarks and will
remain on your credit file for up to 7 years.