Using a credit counseling service and having this situation reported in your credit report should not have any negative impact to your FICO® score.
Enrolling in a Debt Management Plan (DMP) through a credit counseling agency will show up in your credit history, which may have negative implications to some creditors.
Does using credit counseling hurt your credit?
Credit counseling won’t hurt your credit score. And while the actions you ultimately take as a result of that counseling might bring your score down a bit, taking control of your finances and paying off your debt will far outweigh any temporary dings to your credit.
Is credit Counselling a good idea?
Credit counseling can be a good resource for those who would like assistance with their credit and financial plans. “It may be a good idea to contact a credit counseling agency upon receiving your first credit card,” suggests Sullivan.
How long does credit Counselling stay on your credit report?
Will Debt Settlement ruin my credit?
The truth: Debt settlement can hurt your credit score almost as much as bankruptcy. Although asking for a settlement on your own won’t hurt your credit score, succeeding in getting a settlement – or skipping payments as some settlement companies advise – definitely will.
How do I find a reputable credit counselor?
You can find a list of approved credit counselors online. Once you’ve developed a list of potential counseling agencies , check them out with your State Attorney General’s office, and local consumer protection agency. Finally, ask the counselors for free information about their services and what they provide.
What happens when you go to credit counseling?
Participating in credit counseling does not affect credit scores directly. A good credit counseling organization will provide budgeting and financial management education, which will help you gain control of your credit and keep it under control in the future.