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| *Loan,banking and credit>>>credit counseling |
How does using a consumer counseling service affect your credit score? |
How does using a consumer counseling service affect your credit score? Your credit history will be marked as being "counseled" with a Debt Management Plan. Also, lenders close the account (which looks bad on your credit history) while you are under a Debt Management Plan. This may shy some conservative lenders away. any time someone checks your credit, it lowers your credit score. It affects your score similarly to a bankruptcy. It shows new creditors that you couldn't pay your bills on time and it does lower your score. Some lenders won't lend you money if you are currently in that type of a program. Yes. It will show up as a negative factor, but it won't be as bad or for as long as bankruptcy. A friend of mine has good credit and her new husband (this was a few years back) was going through consumer counseling. It was a negative, but it wasn't so bad that he couldn't be on the mortgage when they bought a house. In my very humble opinion, if you need consumer counseling, then do it. If you are struggling with your bills and have tried to work with your creditors, your credit will probably be worse off if you just let it go. At least if you are with a consumer counselor you are working to pay off your debt. |
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