Does credit counseling hurt your credit report?

Yes. I wish I had known this years ago!! I had good credit, always made my payments on time, but was struggling to do it. I enlisted the help of credit counseling and they negotiated better interest rates for me, but on my credit report next to each account was a note saying I had to use credit counseling and it did affect my overall score. Credit counseling is great ONLY if you are LATE making payments and have already damaged your score. For me, a better solution would have been to call the credit company and asked for a better rate, I know they would have obliged knowing my situation, afterall I was a good customer who paid her bills. Answer 2: It all depends on the scoring model used by your credit card company. If they use the Fair Isaac model, known as FICO, used by most creditors, then credit counseling should not affect your credit score negatively. It will be noted on your credit report, however, that you used the help of a credit counselor and this may cause a problem for you when applying for a loan. But different credit card companies use different scoring models. For more information, check the link below.