Is debt settlement reported to credit bureaus?

In Arkansas, debt settlement is reported to credit bureaus. When you enter into a debt settlement in this state, the creditor will typically report the settlement to the credit bureaus. The credit bureau will create a notation on your credit report that the debt was settled. This will remain on your credit report for 7 years, although its impact on your credit score will lessen over time. Depending on the specific terms of the debt settlement agreement in Arkansas, the creditor may also list the debt as "Paid in Full," meaning you have fully paid the debt as agreed upon in the settlement. This notation may have a positive impact on your credit score since it indicates that you have met your financial obligations. If the creditor does not list the debt as "Paid in Full," then the credit bureaus will report the settlement as a charge-off, or debt written off. Charge-offs are derogatory marks on your credit report, and may negatively impact your credit score for many years. In summary, debt settlement is usually reported to credit bureaus in Arkansas. Whether the debt settlement has a positive or negative impact on your credit score will depend on how the debt is reported on the credit report. It is recommended that you closely review each notation on your credit report in order to ensure its accuracy.

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Is debt settlement reported to credit bureaus?

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