Does debt settlement hurt my chances of obtaining new credit?

In general, debt settlement in Pennsylvania can hurt your chances of obtaining new credit. This is because debt settlement programs may require you to close your existing credit accounts and make several late payments. Creditors will view these actions negatively when considering an application for new credit or a loan. Additionally, debt settlement programs, such as settling for less than you originally owe, can stay on your credit report for up to seven years. This can make it more difficult to obtain new credit. However, it is important to note that one of the goals of debt settlement can be to improve your credit score in the long run. By settling your debt, you can pay off debts that have been lingering. Paying off old debt can help to increase your credit score. Additionally, making payments on time can also help to improve your credit score. Overall, debt settlement in Pennsylvania can hurt your chances of obtaining new credit; however, there are some potential benefits in the long run. It is important to consider all of the factors when considering debt settlement. It is recommended to speak with a financial advisor in order to determine the best option for you.

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Does debt settlement hurt my chances of obtaining new credit?

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