I'm not yet behind on any bills, but we just built a new house and our old house hasn't sold yet. I'm trying to find a way to make sure all of my debts are paid on time without defaulting on any loans.
2006-12-27 06:21:12 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
If the credit counselor is telling you that being on credit counseling doesn't affect your credit, they're lying to you. While they (the credit counseling service) don't report you being on credit counseling to the credit bureaus, your debtors will. It will be noted on your credit report that you are in credit counseling. What I was told is that the negative mark from being in credit counseling is almost as bad as having charge-offs or a bankruptcy on your credit. Many years ago, I went through credit counseling. Didn't really need to do it (was never late on any payments), but it sounded like a great idea since my payments would go down and the interest rate would be reduced (with some credit cards, the interest rate went down to zero). Two years after I started with credit counseling, the lease on my car was up and I wanted to finance the residual. I couldn't get approval for the financing and I was told by the finance company it was because my credit showed that I was in credit counseling. Fast forward a couple of years later, and I was off of credit counseling for about a year or so. Went to buy a house and during underwriting, the credit counseling still showed up and almost wasn't able to get the mortgage. I ended up having to get a letter from the credit counseling service stating that I was off of credit counseling before the underwriter would approve the loan.
If you don't need to go through credit counseling (i.e. don't have missed payments/late payments or are behind on your payments), don't do it. It will screw up your credit for years.
2006-12-27 06:54:05 · answer #1 · answered by jseah114 6 · 0⤊ 1⤋
If your not yet behind on any bills I would stay away from those places. Those places are for people who are late making payments to their creditors and really have no where else to go.
Just keep up your payments. Remember it takes at least 7 years to get rid of negative credit due to a late payment. Just live within your means and you will be fine.
2006-12-27 07:22:01 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No, it shouldn't affect your rating negatively, unless you just don't pay for a while. As long as they are paid on time, whether directly or through someone else, they don't care. You credit rating only cares if you are late.
Now, I would avoid those places that push you into debt consolidation loans. The real "counseling" and payment coordinating companies are what you need. They really can help.
2006-12-27 06:24:56 · answer #3 · answered by joannaserah 6 · 0⤊ 0⤋
NOPE... what they do is put a freeze on all your accounts so you can't charge on them. In credit terms... it's a certain rating that shows up on your credit report. Your creditors do this because when they speak to your counselor, they make arrangements to lower your rate, smaller payments etc. Once they are contacted by a credit counseling.. they view you as a risk and post the rating on your credit bureau.
2006-12-27 06:31:47 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No I would suggest that you set up automatic payments through your bank or hire an accountant to pay your bills for you. If you go to credit counseling your credit score WILL be affected and creditors will view you as someone who needs assistance to meet their obligations.
2006-12-27 06:40:18 · answer #5 · answered by Michel D 2 · 0⤊ 0⤋
No, they will all negatively affect your credit and can hurt you as bad as a bankruptcy.
I suggest you read: The Total Money Makeover by Dave Ramsey
2006-12-27 06:44:14 · answer #6 · answered by mldjay 5 · 1⤊ 0⤋