Why should you check your credit reports after debt settlement?
After years of negotiating, you have finally resolved your debts with the creditor and are now relieved that the account is settled for good – no more worries. But unfortunately, your worry doesn’t end here. There is one more thing that you certainly should do! Check the credit report! As it happens most of the time that after the debt settlement the account you just settled
and now owes no debts to the creditor, it still shows on your report a full balance or deficiency balance though it should reflect the zero balance. This is one of the errors which often occur in credit reports.
The reasons could be that the creditor doesn’t report back to the credit reporting agencies about the settlement or if he does, he reports a deficiency balance whereas he should be reporting about the debt being satisfied in full resulting in zero balance in the account. Due to these minor errors, your credit report affects greatly. The report should be showing no balance instead it shows that you still owe some money. This is overlooked at times without the knowledge of the consumer who is at stake for this error. For that particular reason, you should check your credit report after your debt settlement with the creditor and make sure the account reflects zero balance on your credit report.