Each credit card holder has its credit history, profile and credit scores.
These scores are affected due to many things.
One of these things is settlement.
It is totally a legal process.
The Government also wants people to settle their debts through this process but still this process has some drawbacks.
When a person makes full payment of the credit card then it is written on the report that the credit is paid in full but if it is paid through settlement then it written as paid through settlement.
This is biggest drawback of settlement.
Although this is not big issue but sometimes it can create difficulties for you while taking credit in future.
There are different ways of avoiding it.
First of all, until and unless a customer's debt is not sent for collection, it is very hard to get it clear from the creditor directly.
If you have paid your creditor through settlement then he will never write it paid in full but if you are dealing with collectors then you can try something tricky.
Collectors earn money by taking certain amount of commission on the amount recovered.
Everybody needs money and so does these collectors.
If you are willing to pay some extra then you can save your credit scores.
Customer's lawyer can play very effective role in this case.
He can negotiate with the collection company and he can save you from bad credit score.
Filing bankruptcy is not a crime but you will live your remaining life just like prisoner because you will not get easy credit and your credit scores will be totally ruined.
So we can say that the settlement process is far better than bankruptcy.
Apart from this negative aspect of bad rating, settlement is a very legal and authentic option.
A legal advisor can help you in any case.
A customer should always try to find out a legitimate professional person or agent.
He can visit the official websites of Better Business Bureau or The Association of Settlement Companies.
At these websites, you can find detailed information about any company that has affiliation with these organizations.
These scores are affected due to many things.
One of these things is settlement.
It is totally a legal process.
The Government also wants people to settle their debts through this process but still this process has some drawbacks.
When a person makes full payment of the credit card then it is written on the report that the credit is paid in full but if it is paid through settlement then it written as paid through settlement.
This is biggest drawback of settlement.
Although this is not big issue but sometimes it can create difficulties for you while taking credit in future.
There are different ways of avoiding it.
First of all, until and unless a customer's debt is not sent for collection, it is very hard to get it clear from the creditor directly.
If you have paid your creditor through settlement then he will never write it paid in full but if you are dealing with collectors then you can try something tricky.
Collectors earn money by taking certain amount of commission on the amount recovered.
Everybody needs money and so does these collectors.
If you are willing to pay some extra then you can save your credit scores.
Customer's lawyer can play very effective role in this case.
He can negotiate with the collection company and he can save you from bad credit score.
Filing bankruptcy is not a crime but you will live your remaining life just like prisoner because you will not get easy credit and your credit scores will be totally ruined.
So we can say that the settlement process is far better than bankruptcy.
Apart from this negative aspect of bad rating, settlement is a very legal and authentic option.
A legal advisor can help you in any case.
A customer should always try to find out a legitimate professional person or agent.
He can visit the official websites of Better Business Bureau or The Association of Settlement Companies.
At these websites, you can find detailed information about any company that has affiliation with these organizations.