How does credit "negotiation" effect score?

Anonymous · ‎10-29-2007

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!!!

Anonymous · ‎10-29-2007

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!!!!!!!!!!

Anonymous · ‎11-06-2007

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?