A multitude of people seek debt relief each year for various reasons. Whether you have accrued debt due to poor credit management, too much spending or ill-advised purchases, you can get relief from that debt through bankruptcy and other options. But, debt relief does have an impact on your credit score in New Hampshire.
A person’s credit score is updated regularly and is a reflection of their financial life. With three credit bureaus in the United States, people can acquire their credit score from all three in order to compare the entries on their report. Almost every single adult in the country has a FICO credit score.
The lowest credit score rating a person can have is 300 and the highest rating a person can have is 850. Scores lower than 620 are typically viewed as poor, while scores between 620 and 750 are considered good. Scores above 750 are considered excellent.
If you are in debt, and cannot stick to a strict repayment schedule to pay down your debt, you will likely have to file for bankruptcy or debt settlement. Both of these options will help you get rid of debt, but you will need to start from scratch afterwards when it comes to building up your credit.
Both bankruptcy and debt settlement will affect your credit score. These options will reduce your credit score, which means you will need to rebuild it. If you file for bankruptcy, be prepared to see a large drop in your credit score. It will also take quite a bit of time to rebuild your credit score after a bankruptcy filing.
If you file for debt settlement, you will see a less dramatic drop in your credit score compared to bankruptcy. The rebuilding period will also take less time to complete. Debt settlement lasts anywhere from two to four years, while bankruptcy can remain on your record for up to 10 years.
Visit our site today to learn more about debt relief in Nashua, New Hampshire, and how it affects your credit score.