Will a debt counseling affect my credit report?

I am going through a debt couseling service to consolidate my high interest credit cards, will this hurt my credit score?? Through this agency I can only have 1 open credit account -- which is fine, I am SICK of credit debt, but what about buying a vehicle?? WOuld I be able to get financing??

I run a real estate title agency. The Mortgage Broker's I've spoken to have one answer to that. Dont' do it. Even tho you eliminate debt and multiple credit accounts which should improve your credit, the mere fact that you have a debt service on your credit means most people wont' touch you with a ten foot pole. You are better off filing bankruptcy. Even with a bankruptcy on credit you can still get credit. Just at a high interest rate. With Debt Consolidation. You may not be able to get credit at all.

I think the reasoning is that these debt services essentially eliminate any profit these creditor's can make off of you. So there is no reason for them to give you credit again.

And when I asked about this the dont't do it answer was a strong one. Not just offhand advice.

If it hurts it slightly in the beginning that's okay. The long term benefits far outweigh the other options like bancrupcy. It will very difficult to get financing once you start the program, but once the creditors see you paying consistently for several months to a year or more, they will be much more eager to finance you again. Again, with the other alternatives which are "do nothing" or "bancrupcy", the result can be much , much worse.

in the long run it will definitely help your credit. for one, it will show that you have few and low installment accounts. but i think it will hurt your score a little in the short run since you will be closing accounts due to consolidation. this means the accounts that you have the longest credit history with will be closing. good luck!

Affect your credit rate . Yes .Negativly.
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They will trash your credit. It's like filing bankruptcy. Why? It says that YOU couldn't pay your bills and manage your money. Therefore, somebody else had to do it.

Yes. As a loan officer, I can tell you that most lenders look at debt consolidation as being as bad as bankruptcy.