credit rating and credit counseling

A long time ago, it seems, this was the case. However, times have certainly changed. credit counseling has no direct impact on your credit score. Studies have shown that consumers undergoing credit counseling become less likely to default on loans. However, lenders can see a note in the credit report that states a consumer is in credit counseling and interpret it as he/she wishes. This brings the "human factor" into play: some lenders see this as a positive and are willing to grant credit while others may still refuse to grant credit. Also, the note comes off of your credit profile whenever you leave the voluntary counseling program (unlike a bankruptcy which stays on for up to 10 years).

I am also under the impression that it does not hurt your score much. Credit scoring models put much stress on regular payments while assigning you a score. Credit counseling/debt consolidation ensures on time payment. So it definitely helps achieve a good score in the long run.

You can check this thread to know more on this topic.

http://forums.debtcc.com/forums/understand-fico.html