NationalDebtRelief.com Publishes 'How Debt Relief Affects Credit Score' To Help Consumers Compare Bankruptcy Vs Debt Settlement For Debt Relief
To help consumers understand the negative impact debt relief can have on credit scores, National Debt Relief has published a primer comparing the effects of bankruptcy and debt settlement on consumers' credit scores.
New York, NY (PRWEB) January 16, 2013
With the release of its "How Debt Relief Affects Credit Score" primer, National Debt Relief is poised to provide seekers of debt relief with a comprehensive rundown of their options. The essay breaks down the ways in which different forms of debt relief affect the typical borrower's credit score and provides debt-burdened consumers with advice about managing their finances.
For the first time, prospective National Debt Relief clients who are interested in learning more about debt relief can learn exactly how the process affects their credit score. "How Debt Relief Affects Credit Score" specifically compares the negative effects of bankruptcy with the somewhat less serious effects of National Debt Relief's debt settlement program.
Already recognized as one of the nation's foremost providers of debt settlement services, National Debt Relief has taken a major step forward with the release of this credit-score primer.
First, the page provides a basic overview of the means by which credit scores are calculated. It notes that credit scores range from 300 to 850 and advises readers that credit scores above 620 are viewed favorably by most lenders.
It also provides some context by comparing the credit-score effects of common financial events. For instance, it notes that a bankruptcy declaration can reduce a solid credit score by more than 200 points.
"How Debt Relief Affects Credit Score" spends some time discussing the uniqueness of each borrower's credit scores. Since each credit score is different, it is difficult to predict the exact effect of a particular financial event on a given borrower's credit score.
Rather, such effects are better expressed as ranges. Relatively minor financial events like a single late credit card payment might depress a credit score by between 25 and 50 points. More serious problems like a defaulted loan could depress a score by more than 120 points.
The writers at National Debt Relief also stress that higher credit scores may suffer more damage from adverse financial events than mediocre or poor credit scores. This is because the "riskiness" of sub-prime borrowers has already been baked into their depressed credit scores. By contrast, borrowers with excellent credit scores are expected to keep their financial profiles in order.
"How Debt Relief Affects Credit Score" builds up to a definitive conclusion that exposes the different credit-score effects of bankruptcy and debt settlement. The article reveals that bankruptcy is significantly more problematic for the average borrower's credit score than the debt settlement process.
National Debt Relief's debt settlement programs can significantly reduce the unsecured debt loads of delinquent borrowers within two to four years. The process's credit-score effects can be up to 50 percent milder than those of bankruptcy.
To read about how debt relief can affect credit scores, navigate to http://www.nationaldebtrelief.com/how-debt-relief-affects-credit-score/. To learn more about National Debt Relief's focused approach to debt settlement, explore the other informative pages on the company's site or call 1-888-703-4948 to speak with a trained customer service representative.
National Debt Relief can also be reached around the clock thanks to its no-obligation contact form. Further, the company also permits its prospective customers to live-chat with a representative without picking up the phone. National Debt Relief is a member of the U.S. Chamber of Commerce and the American Fair Credit Council.
For the original version on PRWeb visit: http://www.prweb.com/releases/prwebnational-debt-relief/debt-relief-affect-credit/prweb10328715.htm