Debt Management
How Will the Program Affect My Credit Report?
People commonly think that going through a credit counseling program will "ruin" the score on their credit report. In fact, the opposite is often true - successfully completing a credit counseling program can improve your credit rating. Here's why:
Better Payment History: When you participate in our Debt Management Program most creditors will bring delinquent accounts "current" after receiving three consecutive payments arranged and paid through our agency. The process may vary with each creditor and type of account.
Better Debt To Income Ratio:
About one-third of your credit score is based on your credit card debt levels. Because debts are paid off years sooner through this program, your debt to income ratio is reduced faster. This can improve your credit.
Rebuilding Credit: Members aren't allowed to use credit cards that are in consolidation, until the program is completed. Once the debt is paid off, however, many lenders will reinstate credit privileges for their members. In addition, members who are proactive about rebuilding their credit may also be able to obtain mortgages and car loans.
Important Note: Fair, Isaac Company, creator of the popular FICO credit score that is widely used in lending and insurance decisions, does not take into account the fact that a consumer has been in credit counseling when calculating the FICO score.
| Protect Yourself from Debt Collectors | |
|
The debt collecting industry is a thriving one, and it can be a very intimidating one, too. Please read the following booklet carefully. You will discover how to protect yourself from aggressive debt collectors who are out to wreak havoc on your everyday life. Be prepared. |
 |
- 12/08/2011 - U.S. consumers borrowed more in October
- 03/11/2011 - Debit card interchange fee debate takes turn
- 03/09/2011 - Major banks seek to replace debit card revenue
