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!
[quote]What is Not In Your Score
FICOÂ® scores consider a wide range of information on your credit report. However, they do not consider:
Your race, color, religion, national origin, sex and marital status.
US law prohibits credit scoring from considering these facts, as well as any receipt of public assistance, or the exercise of any consumer right under the Consumer Credit Protection Act.
Other types of scores may consider your age, but FICO scores don't.
Your salary, occupation, title, employer, date employed or employment history.
Lenders may consider this information, however, as may other types of scores.
Where you live.
Any interest rate being charged on a particular credit card or other account.
Any items reported as child/family support obligations or rental agreements.
Certain types of inquiries (requests for your credit report).
The score does not count â€œconsumer-initiatedâ€ inquiries â€“ requests you have made for your credit report, in order to check it. It also does not count â€œpromotional inquiriesâ€ â€“ requests made by lenders in order to make you a â€œpre-approvedâ€ credit offer â€“ or â€œadministrative inquiriesâ€ â€“ requests made by lenders to review your account with them. Requests that are marked as coming from employers are not counted either.
Any information not found in your credit report.
Any information that is not proven to be predictive of future credit performance.
Whether or not you are participating in a credit counseling of any kind.[/quote]
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.