What will happen to my credit score after a successful debt settlement?

In Nebraska, a successful debt settlement can impact your credit score in different ways. Generally, when you first enter into a debt settlement agreement, your credit score may drop for a period. This is because the debt settlement process will involve credit report activity that alerts potential lenders that you are dealing with debts. Once the debt settlement agreement is paid off, your credit score should eventually recover and start increasing. This is because the settled debt balance is reported as "paid in full" instead of "unpaid". However, some lenders may not want to work with you because of the settlement history on your credit report so you may want to consider that factor. In addition, when you enter into a debt settlement program, the creditors that have received settlement payments may also report your debt as being partially paid rather than being completely settled. This can also have a negative impact on your credit score. Overall, a successful debt settlement in Nebraska will not immediately improve your credit score, however, over time, your credit score should improve as the settled debt balances are reported as "paid in full". Keep in mind that lenders may still consider your settlement history when making decisions so it’s important to choose wisely when deciding if debt settlement is right for you.

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What will happen to my credit score after a successful debt settlement?

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