Picture this: You’re sitting at your kitchen table, bills scattered everywhere, and your phone buzzes with another collection call. You wonder, “Does Accredited Debt Relief hurt your credit, or is it my ticket out of this mess?” If you’ve ever felt that gut-punch of financial stress, you’re not alone. Debt relief sounds like a lifeline, but the fear of wrecking your credit score can keep you up at night. Let’s break it down and get real about what happens to your credit when you work with Accredited Debt Relief.
What Is Accredited Debt Relief?
Accredited Debt Relief is a company that helps people settle unsecured debts—think credit cards, medical bills, and personal loans. They negotiate with your creditors to reduce what you owe, aiming to get you out of debt faster than making minimum payments. But here’s the part nobody tells you: debt settlement isn’t a magic eraser. It comes with trade-offs, especially for your credit score.
Does Accredited Debt Relief Hurt Your Credit?
Short answer: Yes, working with Accredited Debt Relief can hurt your credit, at least in the short term. Here’s why. Their program usually involves you stopping payments to your creditors while they negotiate settlements. When you stop paying, your accounts become delinquent. Delinquent accounts get reported to the credit bureaus, and your credit score drops. The target keyword—does Accredited Debt Relief hurt your credit—matters because the impact is real and immediate.
How Much Can Your Credit Score Drop?
Let’s get specific. If you start with a good credit score (say, 700 or above), you could see a drop of 100 points or more. If your score is already low, the hit might be less dramatic, but it still stings. The exact number depends on your credit history, the amount of debt, and how many accounts go delinquent. One client shared that her score fell from 720 to 590 within six months of starting a debt relief program. That’s a big swing, and it’s not unusual.
Why Does Debt Settlement Hurt Your Credit?
Here’s the inside scoop. Credit scores reward on-time payments. When you stop paying, your creditors report missed payments every month. After 30, 60, and 90 days, the damage gets worse. Eventually, settled accounts show up as “settled for less than the full amount.” Lenders see this as a red flag. They think, “If you settled before, you might do it again.” That’s why the answer to “does Accredited Debt Relief hurt your credit” is almost always yes—at least at first.
What About After Settlement?
Once your debts are settled, your credit report updates. The accounts show as settled, not paid in full. This status stays on your report for up to seven years. But here’s a twist: as time passes, the impact fades. If you start making on-time payments on other accounts, your score can recover. Some people see improvement within a year or two after finishing the program. It’s not instant, but it’s possible.
Who Should Consider Accredited Debt Relief?
If you’re drowning in unsecured debt, can’t keep up with payments, and bankruptcy feels too extreme, Accredited Debt Relief might be for you. It’s not for people with mostly secured debts like mortgages or car loans. And if you have a high credit score you want to protect, you’ll need to weigh the cost. Ask yourself: Is short-term credit damage worth long-term freedom from debt?
- Best for: People with $10,000 or more in unsecured debt, struggling to make minimum payments, or facing collections.
- Not for: Those with mostly secured debt, or anyone who needs to keep their credit score high for an upcoming loan or mortgage.
What Are the Alternatives?
Debt relief isn’t your only option. Here’s what else you can try:
- Debt management plan: Work with a nonprofit credit counselor to lower interest rates and create a payment plan. Less impact on your credit, but you still pay the full amount owed.
- Debt consolidation loan: Combine debts into one loan with a lower interest rate. This can help your credit if you keep up with payments.
- Bankruptcy: A last resort, but sometimes the best way to reset. It has a major impact on your credit, but so does debt settlement.
Each option has pros and cons. The right choice depends on your situation, your goals, and how much risk you’re willing to take with your credit score.
How to Rebuild Your Credit After Debt Relief
Here’s the good news: credit damage isn’t forever. After you finish a debt relief program, you can start rebuilding. Here’s how:
- Pay all your bills on time—every time. Payment history is the biggest factor in your score.
- Keep credit card balances low. Aim for less than 30% of your limit.
- Don’t apply for too much new credit at once. Each application can ding your score.
- Check your credit report for errors. Dispute anything that’s wrong.
- Consider a secured credit card to build positive history.
One client told me she felt embarrassed after her score dropped, but within two years of steady payments and smart credit use, she was back in the 700s. It’s possible, even if it feels out of reach right now.
What Accredited Debt Relief Won’t Tell You
Here’s the part nobody tells you: debt relief companies make money when you enroll. They want you to sign up, but they don’t always spell out the credit impact. You need to go in with eyes wide open. Ask questions. Read reviews. Talk to people who’ve been through it. And remember, your credit score is just a number—it doesn’t define your worth or your future.
Final Thoughts: Is Accredited Debt Relief Worth It?
If you’re asking, “does Accredited Debt Relief hurt your credit,” the honest answer is yes, at least for a while. But sometimes, a temporary setback is the price of a fresh start. If you’re buried in debt and out of options, it might be the right move. Just know what you’re signing up for, and have a plan to rebuild when you’re done. Your future self will thank you.
