Jaian Cuttari: Does debt management impact your credit score? Debt management is a method to acquire your debt under authority through monetary planning and budgeting. The objective of a debt management plan is to utilize these techniques to help you lower your present debt and move toward destroying it.
According to Jaian Cuttari, while debt management can be a useful mechanism to get debt under command, it can have negative impacts on your credit score. Hard inquiries For example, if you are trying to obtain a lower interest speed, you may start a difficult inquiry into your credit report. Hard inquiries remain on your credit report for two years and can affect your credit score for one year. However, this is a short-term impact and can readily be countered by other elements. For example, if you can obtain your rate reduced, and this means you’re capable to spend your monthly bill consistently, you’ll notice a favorable effect on your income record, which drives up 35 percent of how your credit score is calculated. Missed payments While even prices will have a positive effect on payment history, missing payments will drive your credit score to drop immensely. If you, or your credit