Does joining a credit counseling service hurt your credit?
Monday, February 8, 2010 19:13
Posted in category Credit Counseling
I recently joined a credit counseling service because I am a college student that got way in over my head with credit cards. I was painted into a corner and had nowhere else to turn- so first and foremost I do not regret doing it. When my dad found out, though, he went ballistic. He said I basically had just filed for "partial bankruptcy" and it would kill my credit score. I’ve read other accounts that say that credit counseling shouldn’t hurt your credit. I really want a definitive answer on this. Does it hurt your credit or not? And if so, how badly?
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Amanda says:
February 8th, 2010 at 7:13 pm
It does not affect your credit to use a credit counseling service.
Go to myfico.com and read "what’s not in my credit score" And it will clearly state that doing credit counseling does not effect your credit score. here is the link.
http://www.myfico.com/CreditEducation/WhatsNotInYourScore.aspx
kjerringadi says:
February 8th, 2010 at 7:13 pm
Listen to your Dad, he is right. Going into credit counseling will definitely hurt your credit.
bdancer222 says:
February 8th, 2010 at 7:13 pm
If you are in a debt management program, yes it will affect your credit score just like a bankruptcy. The good news is that when you get everything paid off, your score will rebound with no after effects.
If you are just in credit counseling where they are assisting in getting interest rates reduced but you are making your own payments, your score may or may not take a hit. But once again, when the debts are paid off, you’ll have a decent credit score.
The most important thing is that you learn better financial management and live within your means.