How long does it take to clean up poor credit ratings?
Dear Debt Adviser,I had a very tough situation in the past three years that put me in too much credit-card debt. Eventually, all my debts ended up in collections.Recently, I got a good break and was able to negotiate and settle all my debts. How do these settlements impact my credit score and standing? How long will it take before my score improves? Will I be able to rise and enjoy the benefits of having good or fair credit, despite my history? — CherylDear Cheryl,The term “settlement” refers to getting a creditor to agree to accept less than the full amount owed in exchange for a fast lump-sum payment. Typically, the account in question is significantly delinquent and the creditor believes collecting the debt is doubtful.From a lender’s point of view, a settlement is like getting punched in the nose instead of being shot. The lender knows it could have been worse, but don’t expect a “thank you” for it.It appears that you have stopped the deterioration of your credit history and score
