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New Visitor
Posts: 1
Registered: ‎10-29-2007
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How does credit "negotiation" effect score?

Hi,
 
I am new to this forum and at this moment i am trying to determine the best way out of my debt. There are apparantly two different choices for me, Credit Consolidation and Credit Negotiation/Arbitration.
 
I understand that Consolidation is not reflected in my FICO score, but it is noted on the report which can result in an inability to obtain a loan while participating in the program.
 
As far as Credit Negotiation, I understand that it does directly effect my FICO score. However I am curious how much it will effect my score and my report in the long run?
 
It is very tempting to shoes Negotiation over Consolidation due to the lower payment ($312 vs $560) and shorter terms (36 vs 47 months). However I don't wan to be short sited and end up lowering my score to a point where it will take years to repair.
 
Can anyone provide me with an idea of how much Negotiation would effect my FICO?
 
Thanks so much in advance!!!
 
 
Moderator Emeritus
Posts: 9,252
Registered: ‎03-19-2007
0

Re: How does credit "negotiation" effect score?

It all depends on how it will be reported during and after.

If it will report ok/Current and not marking you late during the payment period- it should help.

You may ask for it to be removed after the terms have been meet.

GET IT IN WRITING!!!!!!!!!!
Senior Contributor
Posts: 4,635
Registered: ‎03-11-2007
0

Re: How does credit "negotiation" effect score?



izod wrote:
 
I am new to this forum and at this moment i am trying to determine the best way out of my debt. There are apparantly two different choices for me, Credit Consolidation and Credit Negotiation/Arbitration.

Are you currently late on anything?
Are you looking at dealing with some sort of debt management or debt consolidation company?
 
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