How does credit counseling impact credit score?

Answer 1

AnswerOnce you employ the use of a credit counselor a notation to that effect is made on your credit score. This, in itself, is a neutral notation and does not affect your credit score. It is the credit score which determines your credit worthiness but there are some creditors who will view this notation in a negative aspect. Most creditors will look only at the credit scores, but whether credit counseling helps or hurts your credit depends on how an individual creditor views credit counseling. AnswerIndirectly.

A credit counselor will work with you to help you reduce your debt and manage your financial life more effectively. Beware fly-by-night operations that scam people out of money under the guise of financial management.

Reducing your debt and maintaining financial control over your life will help your credit in the long run.

Answer 2

Typically when you use credit counseling services there has been damage done to your credit already. It affects your credit, but not as bad as if you are paying late all the time and struggling. Typically they help you settle your accounts and sometimes this "settling" l;owers your credit score. Answer 2: Problems that cause you to seek credit card counseling will definitely lower your credit score. But the fact that you used a credit card counselor to help you out of your debt should not negatively affect your credit score, if your credit company is following the Fair Isaac & Company. Fair Isaac is the company who developed the first scoring model which is used by most creditors today. There are companies who follow a different model and as unfair as it sounds, it can affect your credit score. For more information, check the link below.

Answer 3

== Credit counseling will appear on your credit report, but it's not factored into your credit score. Lenders and creditors may be hesitant to issue new credit if the credit counseling is recent.

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Debt consolidation may not result in the best notation on your credit report. Chargeoffs may not be as favorable as a paid and the loans may be sold to collectors later. However, if you are going to Consumer Credit Counseling Service and the notation is there, creditors will know you are trying to pay off your debts.

In the long run, paying what you owe will work out for the best credit score.

To learn more about CCCS and the educational opportunities available to you, call CCCS toll free at 1-800-501-SAVE. This is a nonprofit, service organization.

Answer 4

It hurts you bad, but not as bad as debt settlement or bankruptcy.

1. All your credit card accounts are closed, most likely with high balances or maybe over limit also, which hits your credit hard.

2. Your 1st payment does not go to your creditors, so u get a running 30 day late, which can run for years, only some creditors reage = make current after x months.

Thanks!

Answer 5

Credit counseling helps people by putting them on a plan to get out of credit card debt. Without this, most people would have no clue as to how get out of debt.

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The fact that you may be receiving credit counselling will not be known than thus will not affect your credit rating.

Answer 6

Credit Counseling evaluates your credit in the way of finding the good ways and bad ways. By doing this you can improve your credit. Credit counseling help doing what needs to be done.