It’s true that settling your debts may have a negative impact on your credit score, even when you reduce your debt obligations. So, when the lender closes the account after settlement, your credit score gets reduced because you no longer have as much credit available to you. High credit scores are specifically designed to reward accounts that have paid on time according to the agreement. The exact impact can depend on many factors like the current condition of your credit, size of dents, and whether your debts are in good standing.
I hope this gives you some clarity.
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How does debt settlement affect your credit score when it comes to home loans?
loanresolve
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10 months
2025-02-18T11:21:02+00:00 2025-02-20T13:32:11+00:00Comment
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