Does being in the consolidation program harm your credit sco

Dear Jackie,

Reporting of the fact that you are under a debt consolidation program in your credit report will not affect your FICO score negatively. But please keep it in mind that the actions taken by you in accordance with the counselor of the program may affect your score. E.g. If you agree to make partial payment or settle debt at an amount lesser than the full amount, then your credit score can be negatively affected. Any sort of late payment before / after starting of the program will also negatively affect your score.

You can also go through go through "effect on credit score" part of the section "Pros and Cons of different solutions" in the page http://www.debtconsolidationcare.com/debt-solution.html .

Regards,
Phoenix

The consolidation program will affect your report as long as you stay under it. Once you complete the program successfully, it disappeares from your report, living no stains behind. Your credit report will start improving afterward. But remember that you need to stay on the contract that you have drawn up with your consultant. Any default on the program will cause a dent to your report, which will pull down your score as well.

Have you already joined a program or are planning to do? You may also consider negotiating with your creditors and do the consolidation yourself.

A credit couselling company will pose several restrictions upon you once you join their program. Also they may need to close down all your credit lines to stop you from accumulating further debts. This will affect your credit badly.

best of luck!!

Makes sense. Someone I know OF went with a program, that was a Consolidation program. So far, ( as far as I know, anyway), it's working for her. But, I ALSO heard she was trying to gt something financed..a comoputer I think. Correct me if I'm wrong, but, doesn't that 'defeat the purpose'?? Consolidating accounts and then trying to get MORE credit?

Dear Sdchargers,

If I have got you right, then you are saying that: -
A person you know is going through a debt consolidation program. During this phase she has also got a finance for computer.

If it is so, then she did not learn a lesson from her previous experience and am quite sure that she is going to face the same debt problem in the near future. At the same time her credit score will also be affected even after the program ends.

But I wonder, why didn't the counseling company warn her from taking such action? Anyways, best of luck to her.

Regards,

Phoenix