Credit Cards Center Credit cards from our partners
Reply
Regular Contributor
Posts: 148
Registered: ‎03-26-2009
0

CCCS & FICO Score

I have a lot of credit card debt,which has dropped my credit score so far.I haven't missed any payments but the interest rates are killing me.I'm thing about enrolling in a credit counseling program.Will this hurt my credit in the future?

Community Leader
Senior Contributor
Posts: 4,006
Registered: ‎07-17-2014
0

Re: CCCS & FICO Score

I just googled does credit counseling hurt your credit score and found this toward the top:

 

http://www.experian.com/blogs/ask-experian/the-impact-of-credit-counseling-on-credit-scores/

 

Google knows everything.

Frequent Contributor
Posts: 475
Registered: ‎07-17-2015
0

Re: CCCS & FICO Score

CCCS programs all require the accounts to be closed (this affects age of accounts) but the program itself doesn't impact credit because the payment they put you on is sent to your creditors on time and you're not falling behind (like debt settlement plan).  This programs work well for people that have small debt amounts <10k as the smaller debt amount can keep payments affordable because the program isn't designed to reduce your payment (usually stay about the same as what creditors are now asking for or could go higher with higher debt amount).  So, if you're already struggling with todays minimums then CCCS wouldn't be for you.  Hope this helped

" EX 671 EQ 670 TU 660 MMS 681"
Community Leader
Senior Contributor
Posts: 4,006
Registered: ‎07-17-2014

Re: CCCS & FICO Score

[ Edited ]

gsully00 wrote:

CCCS programs all require the accounts to be closed (this affects age of accounts) but the program itself doesn't impact credit because the payment they put you on is sent to your creditors on time and you're not falling behind (like debt settlement plan).  This programs work well for people that have small debt amounts <10k as the smaller debt amount can keep payments affordable because the program isn't designed to reduce your payment (usually stay about the same as what creditors are now asking for or could go higher with higher debt amount).  So, if you're already struggling with todays minimums then CCCS wouldn't be for you.  Hope this helped


That was a really helpful reply, Gsully. 

 

The only slight caveat I'd make is to your observation about closing accounts.  The only way that closing an account would affect any age-related scoring factor (age of oldest account, age of youngest account, average age of accounts) is if the creditor closed it and then deleted the closed account from the report.  That's very rare -- almost never happens.  


Closing an account by itself does not affect any of the age-based scoring factors, whether immediately, short-term, or medium term.  Eventually (ten years from now) the closed account will fall off the report, and then of course age factors will be affected, but that's way down the line.

 

So for example, suppose I have a credit card that I opened two weeks ago,  Its age is basically zero.  If I close it tomorrow, then nine years from now it will still be on my reports, and it will count toward my age-related factors as a nine-year old account.  No different than if it was still open.

Frequent Contributor
Posts: 475
Registered: ‎07-17-2015
0

Re: CCCS & FICO Score


CreditGuyInDixie wrote:

gsully00 wrote:

CCCS programs all require the accounts to be closed (this affects age of accounts) but the program itself doesn't impact credit because the payment they put you on is sent to your creditors on time and you're not falling behind (like debt settlement plan).  This programs work well for people that have small debt amounts <10k as the smaller debt amount can keep payments affordable because the program isn't designed to reduce your payment (usually stay about the same as what creditors are now asking for or could go higher with higher debt amount).  So, if you're already struggling with todays minimums then CCCS wouldn't be for you.  Hope this helped


That was a really helpful reply, Gsully. 

 

The only slight caveat I'd make is to your observation about closing accounts.  The only way that closing an account would affect any age-related scoring factor (age of oldest account, age of youngest account, average age of accounts) is if the creditor closed it and then deleted the closed account from the report.  That's very rare -- almost never happens.  


Closing an account by itself does not affect any of the age-based scoring factors, whether immediately, short-term, or medium term.  Eventually (ten years from now) the closed account will fall off the report, and then of course age factors will be affected, but that's way down the line.

 

So for example, suppose I have a credit card that I opened two weeks ago,  Its age is basically zero.  If I close it tomorrow, then nine years from now it will still be on my reports, and it will count toward my age-related factors as a nine-year old account.  No different than if it was still open.


Very good point, I think I should have used an example like a 10 year old account going through CCCS wouldn't impact credit when it closed but 10 years down the road if no other accounts were opened in that timeframe to offset it.

" EX 671 EQ 670 TU 660 MMS 681"

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.