Will credit counselors hurt your credit?
My husband and I recently went thru a non-profit credit counseling agency to reduce our credit card interest rates (we were paying 30% default rate on three cards). After several months of paying on time, the credit card companies refused to lower our interest rates. The only way to reduce them was to go thru counseling service. The interest rates were lowered but now that we are getting straightened out thru service, will our credit score suffer?
Public Comments
- I would think it woudl look good that you are working to fix things.
- Score wise you should be fine as long as the payments are made on time. The thing about credit counseling services is that your accounts normally show as "managed by credit counseling" on your report. This will not affect your score but until you are out of counseling it will make it harder to get any other types of loans.
- Sure it will. It won't hurt as much as a bankruptcy or foreclosure or repo but it will hurt your credit.
* Some answers may have been provided by Yahoo! Answers.