The conversation between human and AI assistant.
What is the difference between write off and loan waiver?
If a lender chooses to forgive a borrower's debt, does that impact the borrower's credit score?
In most cases, the answer is yes. A borrower's credit score will likely be negatively affected if a lender forgives a portion or all of their debt. This is because it shows that the borrower was not able to repay what they owed, which may make other lenders hesitant to lend to them in the future.