Does debt relief law negatively affect my credit score?

Debt relief law in Virginia does not have a direct effect on your credit score. However, it can indirectly influence it by removing a portion of your debt. Each month, your credit score is based on your payment history, amount of debt and the types of debt that you owe. If you use debt relief law to reduce a portion of your debt, then your overall amount of debt may decrease, which could positively influence your credit score. Additionally, when you apply for debt relief law, your payment history may also be affected. Depending on the type of debt relief plan that you select, you may be able to modify the monthly payment amount and interest rate. If you maintain regular payments for your debt, then your payment history can become more favorable, which could raise your credit score. On the other hand, using debt relief law can also have a negative impact on your credit score. For example, if you enter a debt relief plan that requires you to miss a few payments, then these missed payments can be marked as “late” on your credit report and could decrease your credit score. In addition, if a portion of your debt is simply discharged or forgiven, then that may be reported to the credit bureaus which could lower your credit score. In summary, debt relief law does not have a direct effect on your credit score, however, it can have both positive and negative indirect effects on your credit score, depending on the type of debt relief plan you select and how you manage the payments.

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Does debt relief law negatively affect my credit score?

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