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KEYWESTDAVE
Posts: 2
Registered: ‎03-10-2007
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Credit Counseling

I understand that Credit Counseling IS NOT not considered in your Fico Score. What are the ramafictions on your credit report? Can it actually increase your score over time? After all everything is paid on time and in full.
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Brammy
Posts: 5,436
Registered: ‎03-10-2007
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Although it is not considered in your score, it can preve...

Although it is not considered in your score, it can prevent you from receiving new credit as it is reflected on your report. That being said it is always a better option than BK just be sure to go with a reputable agency and don't get talked into the fast talking commercials s seen on TV.  The United Way in your area may have just such a service available
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bscrenci
Posts: 3
Registered: ‎03-11-2007
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It won't necessarily affect your score, but it very much...

It won't necessarily affect your score, but it very much can affect your ability to be approved for a loan or mortgage. A potential borrower enrolled in CCC adds perceived risk when creditors assess the borrowes ability to repay a new loan on time. Many people would argue that it should be a positive sign of a borrower making a concious effort to manage thier debt, that is simply not how it is viewed in terms of risk-assessment from the standpoint of an underwriter. Consult with a professional to decide what is best for you, and remember it is a long-term effort. Completing a CCC program and then managing your debt on your own properly for a period of time after the program should put you in a good position to get credit with a decent score.
New Member
KEYWESTDAVE
Posts: 2
Registered: ‎03-10-2007
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Credit Counseling

   Of course if you are in a deep debt hole and want to get out, logically you need to stop digging. (take on more debt)
   On the otherhand car dealers will use anything and everything on your credit report against you because they make very little $$ on the car and mucho $$$ on the financing.
   Then again mortgage brokers want the sale and most want assurance you pay all creds on time, 35% of your score and you are paying down your balances, 30% of your score.
Much confused with Debt Settlement and Debt Negotiation Programs which destrots your credit score!  see http://www.myfico.com/CreditEducation/WhatsNotInYourScore.aspx
 
KEYWESTDAVE
New Member
Jimer
Posts: 8
Registered: ‎04-18-2007
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Re: Credit Counseling

[ Edited ]

I signed up with a Credit Counseling agency a little over a year ago because I had two credit cards at or around 23%.  With the agency I choose, the rates were dropped to 9.9%.  This really helped however, as indicated, the accounts were closed and my credit report reflects "managed by a credit counseling agency".  I didn't think much about this until I decided to look for a new mortgage for a new house.  One mortgage company increased my proposed rate drastically due to "two trade lines being managed by a credit agency." 

The fact I signed up for this to better manage my debt was no argument or defense.  They also said they want to see me out of this program by at least two years, so dropping the agency would add no value.  I killed the house deal and decided to continue to pay off the debt.    We'll see about the two years.  wink robot



Message Edited by Jimer on 05-27-2007 03:00 PM
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joshz
Posts: 1
Registered: ‎05-27-2007
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Re: Credit Counseling

In a previous message Brammy wrote "Although it is not considered in your score, it can prevent you from receiving new credit as it is reflected on your report." I know my situation is only anecdotal but I am in a debt management program and I just received a credit card account with an available balance of $3,000.

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