Credit Counseling Frequently Asked Questions

How do I know if I need credit counseling?

Unfortunately, there is no clear-cut answer to this question, no dollar amount that means you need to consult a credit counselor. You should realistically analyze your financial circumstances and decide whether or not you can manage, plan, and maintain a path for getting out of debt. If you feel that you cannot do this on your own, or just want to know more information on how a credit counseling program can help, call us at 1-888-804-4111.

Will credit counseling affect my credit score?

Having a credit counseling program noted on your credit report will not directly affect your credit score, though the proceedings of such a process may negatively affect your score. Actions such as settling for less than the full amount, making partial payments, or making late payments are all examples of how your credit score can negatively be affected.

How long does negative credit stay on my credit report?

Credit bureaus can report most negative credit information for up to seven years under the Fair Credit Reporting Act. Bankruptcy is one of the exceptions to this rule, as it can be reported for up to ten years.

Can a Credit Counseling program help improve my credit report?

Truthful negative information can only be removed from your credit report by the creditor who reported it. Nevertheless, using a Credit Counseling program to stay on track with your monthly payments can help improve your credit history, though it will still take time for your credit score to completely recover.

Which debts can be entered into a Credit Counseling program?

"Unsecured" credit, such as credit cards, department store cards, gasoline cards, and specialty store accounts are the type of debts which you would want to enter into a Credit Counseling program. What you should avoid is home mortgages or auto loans, as the creditor can repossess these items if you fail to make payments.

Can I acquire new credit while in a Credit Counseling program?

You should not attempt to acquire new credit while in a Credit Counseling program. If new credit is established, many creditors will remove your account from the program and your fees and interest will resume at maximum rates.