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Posted: Thu Jul 19, 2007 9:59 am Subject: Will my credit score drop?

My credit score now has dropped because of more of my income going out than coming in. This is due to to many personal loans and maxed out credit cards. Will this program hurt my credit or cause more credit problems?

Posted: Thu Jul 19, 2007 10:36 am Subject:

Hi Stamey,

You didn’t mention what program you are going through.
As, more of your income going out than coming in, I assume that you are paying your debts off. In this case, don’t worry about the temporary drop in your credit scores. Within a few months in the process, the score will start moving upwards.

Posted: Thu Jul 19, 2007 11:56 am Subject:

Credit scores will go down if your accounts are currently in default. Creditors will charge high interest rates and late fees on every default. This will further lower the scores. You have to make payment arrangements with the creditors and clear off the debts asap. This will help in improving your scores. Read this link for other credit repair tips.

http://www.debtconsolidationcare.com/credit-repair/about23503.html

Consolidation will be a good option for you in paying off the accounts. The counselor will negotiate with your creditors to lower the interest rates and waive off most of the late fees. This program will be reported in your credit copy until you are enrolled in the plan with the consolidation company. Once everything is paid off, the creditors will report to the bureaus and the consolidation program will be removed from your file. Your scores will also go up

Posted: Fri Jul 20, 2007 12:52 am Subject:

Accounts that are under debt consolidation plan are marked as "Undergoing consumer credit counseling." If you have opted for debt consolidation then a comment stating that you are paying off your debts through a credit-counseling agency will appear on your credit report and will stay there until the account is paid in full. How such a comment will affect your score depends upon your payment history. For instance if a consumer who runs regularly 3 to 4 months late in his payments and opts for a debt consolidation plan and starts paying off the bills on time will have no negative impact on his report.

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