Concerning Consumer Credit counseling--does it help or hurt--effect credit rating?
415067
These programs do nothing to help your credit, it is actually the oppostie, regardless of what they try to tell you. What happens is this: You sign a contract for them to get your debtors to lower interest rates, then they decide on a lump sum you pay the credit "counseling" company, a part of which is a fee they take for this "sevice", then they divvy up that payment amoung all your creditors. You do NOT have only one creditor now! Then as long as it takes you to pay off these debts, which can be a long time, you continue to show late, non-payment, on all these accounts. They do not pay them off one by one slowly allowing you to demonstrate you are  paying them. they sit there as bad debts the entire time without much to show for all the hard work you are going to to pay off your debt. After, while it shows them as paid off, it also shows how long it took you and how long these creditors went without the money you owned them. This helps your credit very little. OH yeah one more thing, when you sign the contract you are agreeing to NOT apply for releaf under the bankrupsy law!! YOu sign away your right to do this untill these current debts are paid off!! If you fail to make your payments you also now have one more creditor that of the consumer credit counseling company you signed the contract with!! Do you know for sure what your income will be next year or the year after that or the year after that, etc?? Do you know for sure a tragic accedent or illness will not strike your familly? Do you know for certian you will continue to have your current health plan and for sure what your share of the medical bills will be? Listen if you don't know even one of these things FOR SURE then credit counseling is not for you. If you do know for sure then by all means go ahead and sign up. \n\nI highly reccomend you get online and begin looking this information up. Get information directly from a one of those so called non profit organizations and spend $100.00 at the most, often you can do this for free to speak with a bankrupsy attorney. Become fully informed, look at your situaltion, your future possible situations and then make a fuly informed decision which will be in YOUR and your families best interest. There is a lot of room in the small print section of the contact you sign with these "counseling" agencies. Where do you think they get their money from? You and others like you who sign up for services.
303026
Consumer credit counselors are not non profit. The action will be looked at on future credit reports by lenders as a chapter 13 bankruptcy. You are trying to reorganize your debt. Try debt snowball. take the smallest balance bill and pay as much as you can until it is gone. then take that payment and add to your next smallest and so on. Other than that go and file the chapter 13 and you will be given an amount to pay for the next 5 years or so then you will have the same thing accomplished
938272
Yes, but it should not affect the transaction you are having it pulled for. If you do not complete the transaction it will affect the next one you attempt to do. \n\nBrokers do serve a good purpose as they don't have to have your credit run several times to shop for the best loan for you. \n\nYeah that's a blatant ad, but ohh well! business is slow, you gotta start somewhere! :)
112594
Yes, it's one of the better choices, when trying to keep your credit rating good. Often, you end up paying less than you owe, or get a lower payment, that enables you to pay off the whole amount easier. It's better that you call them too, instead of waiting for them to find you (and find you they will!). I did that with a credit card and got my payments lowered to less than a third of what they were demanding. Of course, I told them it was either that or bankruptcy. They chose the reduced payment. And because of that, my credit score goes up every year that I keep up with my payments. And, I raise the payment by a couple of dollars every 6 months, showing that I'm making an attempt at paying it off quicker, which is something they like. All in all, you owe them money, so it just makes sense that you make whatever arrangements you can to pay it back. <*)))><
298088
I have included a few links that expand on the answer below. I hope this helps.\n\n\nQ. What is a credit score, and how does it affect my ability to get credit?\nA: Credit scoring is a system creditors use to help determine whether to give you credit, and how much to charge you for it.\n\nInformation about you and your credit experiences, like your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit application and your credit report. Using a statistical formula, creditors compare this information to the credit performance of consumers with similar profiles. A credit scoring system awards points for each factor. A total number of points — a credit score — helps predict how creditworthy you are, that is, how likely it is that you will repay a loan and make the payments on time. Generally, consumers with good credit risks have higher credit scores.
678913
It is impossible to suggest a best course of action without knowing the specifics of your situation, and I would not suggest disclosing specific personal financial information in such a public forum. However, you do have more options:\n\n1. Consumer Credit Counseling (debt management plan)\n\nThis option should not impact your credit score, but most credit card companies add a flag or note on your credit file to inform anyone looking at your file about your enrollment in a debt management plan (provided by a CCC agency). This may prevent your from getting a loan (but, you shouldn't be looking for a loan if you already drowning in debt, anyway). Only use government-approved CCC agencies (see link below).\n\n2. Debt Consolidation (mortgage refinancing)\n\nThis should only be used by someone who can restrain themselves once all that debt is moved off of their credit cards. Often, newly available credit card balances are so tempting that people who move their unsecured credit card debt to a secured mortgage will run up new credit card debt (and lose their home when it gets too much to handle).\n\n3. Debt Settlement (debt negotiation)\n\nDebt settlement is when you (or a professional debt negotiator) negotiates a reduced-balance settlement to satisfy a debt. This should only be used by people who cannot afford a debt management plan (CCC) and who also want to avoid bankruptcy and who are willing to repay their debts according to their financial ability. The process of saving up and negotiating debt settlements is typically damaging to your credit score, so keep this in mind if you consider this option.\n\n4. Bankruptcy (Ch. 7 or Ch. 13)\n\nWhile the creditor-supported bankruptcy law that was passed last year is designed to make it more difficult to cancel your debts through Chapter 7 bankruptcy, bankruptcy is still an option. You need to understand the difference between Chapter 7 (essentially, total erasure of debts) and Chapter 13 (a court-structured repayment plan).\n\n5. Self-Managed Plan\n\nYou may be able to pay off your debts if you are able to cut back on spending, use a tighter budget and stick to an accelerated repayment plan. This process involves paying the minimum monthly payments on all accounts except your highest interest account. On that account, pay more (as much as you can). Once that is paid off, apply the amount you were paying towards that account on top of what you are paying to the next account (ranked by APR). Repeat this process until all debts are paid off. While you do this, continously negotiate with your credit card company to lower your APR (be sure to threaten a balance transfer to another account and be ready to transfer if they refuse to give you a break). \n\nAgain, it is not an issue of which is better. It is an issue of which is better for you considering your specific situation, concerns and goals.
1024379
I am a mortgage loan officer, and work with credit issues everyday. As to what you are referring, I have heard of this but never done it. Would be curiuos to see if you as the consumer can get all three bureaus to report the same information. \n\nThe reporting is done from the creditor's side. They report to whomever they choose.. typically depends on your local region. For example, smaller based creditors in the SouthEast will typically report to Equifax. Larger national companies may report to all three. How they would gather the information is more my question.\n\nNow, in regards to how to improve your scores, I believe you are getting some mixed advice. You must understand how the scores are built before you can determine what will impact good or bad.\n\nMajority (but not all) of your credit score will be based on the past 24 months. So in other words, if your credit history over the past 2 years is mostly bad, your score will reflect that. Old credit may hinder scores slightly, but will not comprise the majority of your score.\n\nOld negative items may not have a major impact on scores, but can prevent you from getting over the 700 score mark and maybe even hinder you with certain lenders.\n\nMy suggestion to anyone trying to improve credit is this: Get on time with ALL current open credit, add good POSITIVE credit to help push scores up, and depending on your purchasing goals you will work on your old negative items now or later. For example, looking to buy a car or home within 90 days... leave the old stuff alone. Looking 1-2 years down the road, pay it off.  Why?\n\nPaying off old negative items will update the item to something within the past 24 months (Date of last activity) and will be factored more highly in your scores. So paying it off now will bring your scores down! (Yes, that does sound contrary, but it is what happens.) If you want to buy something sooner than later, do what you can now to boost your scores (i.e. Good credit) and then attack the old stuff after you buy what you needed.\n\nIf you attack it now with a long term goal in mind, your scores may suffer in the short term, but with the added positive credit and paying off of old credit, you will have sweet scores in the long term.\n\nSee the information below on where to find the good positive trades and how to work them to your benefit.\n\nGood luck!
1158534
When I started my credit repair, I went to "many" different credit repair sites. Some were terrible, some were no help, but I had finally found a couple good ones that I've learned alot from (one in particular).\n\nDon't use a site that charges you for their info on credit repair, you can find the same things and probably more on other sites.\n \nI'm listing the best site that I had found.
961150
In this case I agree with the previous responder.  Creditboards.com is a forum for people seeking help with fixing credit problems.
862785
Probably Consumer Counseling Service. They consolidate your debys and lower your monthly payments. They work with the creditors and can even lower your interest rates. They charge a VERY minimal amount to process your account and are quite good.
874347
Going to credit counseling is almost equivalent to filing bankruptcy, do not go to credit counseling,  your credit will be ruined if you do. If you own a home, is the best way to go, to refinance it and pay off your debt, & obtain a low interest rate, if your fico is desent, sorry there is no company that works well, you simply can't trust them.\n\nThe way it works is they take a portion of your payment (which they keep) & send the rest to the creditors, ("negotiate it" ) whenever you negotiate, or settle balances or payments with your creditors it is reported to the credit bureaus as a settlement,for less than the amount.\n\nWhen you obtain a credit card, you sign a disclosure saying you promise to pay on time and as agreed, as agreed is when you signed on the dotted line, therefore it must be kept as agreed.\n\nWhatever you do, do not go to any of these companies, as I've said it will ruin your credit and if you are planning on purchasing a home any time soon, you won't be able to, having gone to credit counseling, (credit counseling) in the lender's eyes means you are not able to manage your bills and cannot pay on time, (you are a distressed consumer) therefore they couldn't approve a bigger responsibility such as a mortgage loan. \nRead these very important articles:\n\n(Knowledge is power)\n\nhttp://www.ftc.gov/opa/2004/03/credittestimony.htm\n\nhttp://www.ftc.gov/bcp/conline/pubs/credit/repair.htm\n\nhttp://www.consumeraffairs.com/news03/credit_counseling.html\n\nhttp://www.consumeraffairs.com/debt_counsel/
373808
Was the chapter eleven filed by your husband before or after you were married? If it was before you were married you may be able to have that noted on your credit report. Having said that, more and more companies are paying attention to credit reports as a way to thin out persons who may not be able to be responsible with money management. This does not mean that this is you. But you do need to understand that the type of jobs you keep applying for may fit this profile.  Try looking into government positions. Most do only a background and not a finacial report (which does not say much for the government). Do look at your own credit report. If it is poor, than find a way to build good credit for yourself and encourage your spouse to do the same. Financial counseling is a good start to overcome your distress.  Good luck!
766636
Be very careful with credit counseling agencies.\n\nThere are good ones out there - and there are bad ones out there.\n\nAny that charges YOU the customer - is not a good deal.  Then too there are those that have you send them your money and then you never know what happened to it.  No one gets paid and you never get it back.\n\nThe only one I can tell you for sure is legit is "Consumer Credit Counseling".  It appears to be the most respected one in the credit industry.  \n\nKnow too that lenders do not have to abide with whatever a credit counseling agency tells you the creditor will do.\n\nPLUS - talk to the creditor first is a good idea.  Explain to them that you are considering this option.  You may find that your creditors will work with you to resolve the problem you are experiencing.  My company does that.  At no cost to anyone.\n\nGood luck.
1187360
As a former financial counselor, I can let you know of what to look for in a debt management company prior to enrolling. I also am enrolled in debt management, so I know what helps. Make sure you find a company with the following:\n\n1) A company who is genuinely trying to help consumers. A company who is looking for the consumer's best interests will not only counsel you, but they may take you through a budget, analyze your situation, provide free financial material, etc. In other words they don't just try to enroll you. You should never feel pressured.\n2) A company who is non-profit, certified, and has a good track record with the BBB. A company who is non-profit may ask for a donation but it is purely voluntary. All your payments should go to your creditors. Also there are regulation agencies in place to weed out the "shady" companies, so you should make sure they are certified and a responsible member of the BBB.\n3) A company that answers all your questions. You probably have lots of questions, but a counselor who is knowledgable AND certified will be able to walk you through step by step, and explain thoroughly every step of the process. \n\nIf you are interested in the company I worked for, it is http://www.incharge.org . They have a great relationship with the Defense Department as soldiers that are in financial trouble are often referred to them. If you are interested in the company I have an account with, it is http://www.careonecredit.org/ . Both of these companies are registered with the BBB and have outstanding reputations. \n\nThere are plenty out there though, so you should find the one that best suits your needs. I hope that you get to where you want to be and don't ever give up! Patience will heal your credit. There is no quick answer. Good Luck!
125935
I don't think it will affect their credit rating at all.  It might affect yours though, if that person runs up a big bill and deosn't pay it and you are left holding the bag.  Unless it is a close family member and one you really trust I'd be careful.
885252
No, you aren't the only one that finds this confusing.  It seems like the more I read--the more they contradict eachother.  I think it is just a hit or miss---sometimes the advice you get works, sometimes it doesn't.  What worries me is that some of the people that have used the advice received have had negative effects on their credit---its really confusing.
499566
There are a number of options depending upon your Mortgag company.  There are skip payments, interest only payments, etc... Consumer Credit Counseling (CCCS) cannot help you with lowering your house payment & any company that does not wish to accept CCCS terms will simply mark you delinquent.\n\nI recommend you call your mortgage company - talk to them, let them know your situation and see how they can help.  \n\nYou will be amazed how willing they are to work with you if you call when you are first entering a hard time!!