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How does credit "negotiation" effect score?

New Visitor

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!!!
 
 
Message 1 of 3
2 REPLIES
Moderator Emeritus

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!!!!!!!!!!
Message 2 of 3
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Senior Contributor

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?
 
Message 3 of 3