How does a Debt Management Plan affect my credit rating? Some lenders may view a credit counseling notation negatively. Fair Isaac is the company that invented the FICO credit risk score that lenders use. They have stated that in calculating your FICO credit score, they do not consider "whether or not you are participating in a credit counseling of any kind". What this means is that by entering a Debt Management Plan, there will be no negative impact on your FICO credit score. Please see the following sites for more information:Credit counseling is a process to help people in debt regain control of their finances. Many people choose credit counseling as an alternative weather you have good credit or bad credit.
How does the debt management plan affect my credit score? Your credit score is not directly affected by joining a debt management plan (see 4 credit-scoring myths). While some lenders may treat credit counseling unfavorably, the long-term effects of a debt management plan are beneficial. In fact, the debt management plan is designed to allow you to rebuild and restore your credit history by giving you an opportunity to:CCCS-OC will never turn anyone away who requests debt counseling. However, our Debt Management Plan may not be appropriate for every situation. The DMP is designed mostly for those that are behind on their accounts or who are only making the minimum payments on their cards.
How will using a non-profit Debt Management Plan affect my credit rating? Some creditors and some credit counseling agencies will report to the credit bureaus that you are repaying through a Debt Reduction Plan. Usually the credit report will reflect this only while you are actively on the program. AFCC does not report to any credit bureau. If you have been making full payments to your creditors and all your accounts are up-to-date, then your credit report may show late or less than full payments being made.
What fees do you charge in order to provide the debt management plan? All initial counseling, including budget and debt review, is free. If you were to qualify and choose to enroll on a debt management plan, the costs may vary based on your states regulations and the number of unsecured accounts you place on the program. Clients typically pay a nominal set-up cost ($34.90) to cover the expense of account activation, and a monthly servicing cost to cover recurring expenses. Clients under severe financial distress may have some of their costs waived.CCCS-OC will never turn anyone away who requests debt counseling. However, our Debt Management Plan may not be appropriate for every situation. The DMP is designed mostly for those that are behind on their accounts or who are only making the minimum payments on their cards.
Do you have other plans other than the Debt Management Plan? We provide educational classes for our clients and the community on topics dealing with budgeting, money, management, first time homebuyers, credit reports and much more. Click here to obtain a seminar schedule or look for the schedule in your quarterly newsletter.CCCS works with thousands of creditors nationwide. We have established relationships with all the major credit card companies, most chain store credit departments and finance companies.
Can everyone participate in the Debt Management Plan (DMP)? The DMP may help many people who are experiencing difficulty making payments to creditors or are unable to make payments. We encourage anyone who is concerned about their debt situation to schedule an appointment with one of our certified counselors. CCCS will never turn away anyone who requests debt counseling. Your counselor will decide which course of action is appropriate for your financial situation.Your credit score is not directly affected by joining a debt management plan (see 4 credit-scoring myths).
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