How Will The Program Affect My Credit Report?
People commonly think that going through a credit counselling program will "ruin"
the score on their
credit report. In fact, the opposite is often true - successfully completing
a credit counselling program can improve your credit rating. Here's why:
Better Payment History: When you participate in our
Debt Management Program some creditors may 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, Members can then reapply for new credit, and in fact some creditors will
offer a new credit card to those Members because they have paid off their debts
through a Debt Management Program. 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, also known as a beacon score, is widely used in lending and insurance decisions, does not take into account the fact that a consumer has been in credit counselling when calculating the FICO score.
| Coping with Financial Stress | |
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If you're under financial stress, you may be arguing with your spouse or family members about money, experiencing headaches or panic attacks, hiding bills or receipts from family members, or finding it difficult to sleep at night. Your eating habits may have gone south, and you may find it hard to make it through the day. Use this guide to help you deal with your stress. |
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