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| *Loan,banking and credit>>>credit counseling |
Does a credit counseling company make your credit worst or better? |
Does a credit counseling company make your credit worst or better? The only effect it has is that the accounts read "Included in credit counseling" on your credit report. I used Consumer Credit Counseling Services and they worked with my creditors and lowered my monthly payments and my interest rates. I was debt free in 36-months and they did not charge me a dime. Source(s): Been there done that. WORSE so they say, I believe them, I don't know about you.'' You determine your own credit rating. If you pay your debts on time you have good credit. If you need counseling, it means you already destroyed your credit rating. A good credit counseling service can help you resolve your problems, but finding a good service is very hard. Most of them are only interested in making money from you, and make things worse. Be very careful about using such a service. Take charge of your situation yourself, talk to your creditors and explain that you want to resolve any problems. Without more information about your situation, it is impossible to advise you better. Also remember that using with a credit counseling service can harm your credit report to some extent. But the benefits are more than the drawbacks. Trying to show that you are sincerely trying to pay off your debts is much better than to explain a bankruptcy or a credit report filled with charge-offs. http://debts-to-wealth.com/category/cred... I've personally just given up with Credit Counselling and applied for Bankruptcy. My monthly payments were still pretty high with Credit Counselling and as soon as I lost my job, they said that they would not and could not protect me from creditors coming after me. I found this statement strange...the fact that they could not re-negotiate with my creditors to bring down my monthly payments until I found another job? I started digging for more information and found out that in fact they cannot help you, if you cannot afford the payments. Just because you are with Credit Counselling does not mean that the creditors cannot sue you for unpaid amounts. I also found out that...get this...they act as a collection agency. It's totally legit & legal the way they do it but nontheless they are still acting as a collection agency. I started digging around to find answers and found out that you pay a monthly fee as well as whatever they collect from you for the creditors, the creditors in turn will donate a percentage back to the Credit Counsellors. "This information has been confirmed by my Credit Counselling Agency". Therefore, they will try and obtain the most amount of money you can pay them per month. They tell you that it should take about 5 years to pay off all debts, however, it takes another 2 years after that for it to clear your credit report. So this will stay on your credit report for a total of 7 years. I have recently declared bankruptcy and will be discharged in 9 months and it will take another 2-5 years or so before I can re-apply for credit (which I think I will stay away from!) Interest rates are way too high! I will be through my bankruptcy way before i would have been through the credit counselling. I should note that my credit was fine (payments were up to date) when I began with credit counselling...I just had a high credit/income ratio and I wanted to be able to live a little, ie. food, clothing etc. Once I began with credit counselling and began paying my creditors a reduced principal and interest rate (they cannot get every creditor to waive interest), I was screwed after I left the program because the creditors tack the interest back on and note you in default on your loans on your credit report. So be careful and ask lots of questions! |
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