What is NOT in your credit score...

Got this from the myfico website...There have been many questions lately about whether debt counseling/consolidation affects your score..According to this article, it does not!

Thanks for the great post Jessi. I have also seen people arguing on whether debt consolidation hurts or not. This post will put a full stop on all the arguments.

I have read somewhere that consolidation des not affect credit score; however, future creditors might not like it. This is again a controversial topic. See paying bills through consolidation is far better than not paying, then why creditors would dislike it?

Jessi now compile the points that are in credit score and post it here. I am waiting…

Thanks for the info.

Well, lenders may not like it, BUT at the time you are in consolidation, you should be concentrating on getting OUT of consolidation, not adding more debt, right?

Here is what IS included in your credit score..

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Great post Jessi. I would just like to add 2 very important things to note. For one, the fact that you are in credit counseling does appear as a note on your credit report. As stated, it does NOT affect your score. However, lenders can see it. The fact is, lenders are human, and different lenders have different opinions on credit counseling. Some see it as a negative and will decline giving you credit, while others see it as a positive and may grant you credit.

A second important thing involves the impact on your credit score. Once again, the fact that you are in credit counseling does not affect your score. However, this is a bit misleading. The truth is, when you are in credit counseling all of your accounts must be closed. This does have the initial effect of causing a drop in your credit score for some people (particularly those that still have good credit and had a longer credit history). This drop is generally temporary, and your score will usually improve as you pay down your debt. For most people who are considering credit counseling, this is not an issue. For them, the benefits of credit counseling often far outweigh any disadvantages of closing accounts. The exception is when someone has great credit and can afford to comfortably pay off one's debt on one's own. In this case, debt consolidation may not be the best option. I hope that is not too confusing, but I just want everyone to have ALL of the facts.

Yes dmj has some good points over here. Sudden closure of all accounts might cause a drop in your score. But it is temporary. The benefits of debt consolidation are felt afterwards.

i dont understand the whole credit score at all.

Credit is a vast subject. Which portion is unclear to you, identity? I will be glad to offer some suggestions.

This may sound pretty stupid but are factored into a credit score? I've been told both ways "yes they are" and "no they aren't" which one is correct and is it legit for the companies to keep placing these bills under the collections heading even though a payment agreement has been setup and monthly payments are being made?

oops the missing part of the above post is medical bills sorry lol

Hi... I am trying to buy a house with my fiance, and I have 2 negative posts on my credit - one is a 60day late from 2001, the other is a 30day late in Feb 06. I need to get these things removed to up my credit score and get a better rate. I need some help talking with the creditor for the Feb 06 incident. My lender has suggested I dispute the late charge - but if I were actually late, what do I do? I have since closed the account, and the dollar amount was very small....

Thanks for your help.

The negative cannot be removed from the credit report before the seven years reporting time. This is according to the FCRA laws. However, you can do some repair to the bad credit by paying the accounts with your creditors. Talk to your creditors and see if they can offer you some repayment options. Once they are paid off, they will update your file with the bureaus giving a better view to your credit.