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Settlement does some things directly to your credit report and it has some indirect effects, too. Talking directly, you will see a slight dip in your score when settlement takes place. Because you are not making the full balance payment, this is reflected on the report and it can be a real negative for you. What you will be glad to hear is that the indirect items can sometimes offset these direct hits that you will undoubtedly take. Indirectly, your credit report benefits from having less total debt and you also benefit from having all of those delinquent accounts closed instead of keeping them open.

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Settlement takes away the possibility of missing more payments, which is quite important in itself. If you can eliminate these things, you can stand to raise your score a few points. Ultimately, credit reports and credit scores are a delicate balance and a mix of all of the factors out there, so you will not be able to get a clear answer on just how much your particular settlement will effect your score.