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Does Debt Relief Hurt Your Credit?

Credit Corp

Debt relief won’t hurt your credit alone. Debt relief and debt settlement options don’t hurt your credit score on their own. These programs aim to help reduce your debt and if that debt is revolving credit, it can reduce your credit utilization and improve your credit.

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How to Pay Off Debt Fast with Low Income (10 Steps)

Credit Corp

Prepare your case: Highlight your payment history, creditworthiness, and loyalty as a long-term customer. Compile improved financial stability or credit score evidence since you obtained the debt. Debt consolidation allows you to combine multiple debts into a single loan with a lower interest rate.

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What is Debt Consolidation and How Does it Work?

Better Credit Blog

But, in the longer term, debt consolidation often improves your credit score. If you’re not missing or making late payments anymore, your creditworthiness will increase. Also, if your credit utilization percentage (the amount of debt you owe vs. how much credit you have available) goes down, your score should increase.