I personally refer a lot of clients of mine to do both, they work wonders together. Debt settlement coming first because it does have a temporary negative impact on your credit score. When you are getting near completetion of your debt settlement process begin credit repair and your credit will go way up.

Why? Because when go through debt settlement in the begininng your score will take a hit due to falling behind to reach a settlement. However the negative remarks from debt settlement are very easy for an experienced credit repair company to dispute. When you are finished with your settlement process that will have a very positive impact on your credit score as well. Because 30% of your FICO score is made up of your debt to credit-limit ratio and once your debts are settled this will look a lot better and your score will see a significant rise. So this process of settlement and credit repair will have a very positive effect on 2/3's of your score being your (debt-credit-limit) and (payment history). Now you will be happy that you saved a tremendous amount of money through settlement and time. With credit repair this will help get your score back up along with the settlement. Now you want to really boost your score? Begin showing a new positive payment history. For people who already have a mortgage throughout this whole process your score will go up extremely high(if you make your mortgage payments ofcourse). I hope this clears this whole issue up a little bit, they are both great services if you use the right organizations to help you and make sure that you are educated on the issue.

First settlement and then repair.

Tags: credit card debt settlement, consumer credit counseling, debt consolidation, debt negotiation services, credit repair