Can a Consumer Credit Counseling Service help me repair my credit?
Consumer Credit Counseling Service or CCCS is a nonprofit debt counseling service that assists consumers who are over their heads in debt. CCCS is funded and controlled by the credit grantors and the credit bureaus.
Often, CCCS provides a beneficial service to the consumer. Because of the obvious allegiance between CCCS and the credit bureaus, you cannot reasonably expect CCCS to do anything that the credit bureaus would frown upon, such as help you repair your credit.
In fact, if you decide to leave CCCS before you have finished their program, they can list your failure to complete the process as a negative listing on your credit report (though this is rare.) When you are participating in the CCCS program, your creditors will often note it on your credit report. If you have perfect credit, and wish to keep it, you may not want to use a credit counseling service. These services usually create negative listings because their process will generally make you late on your bills at least 30 days.
The fact that you resorted to a debt counseling program is a red flag for prospective credit grantors. Remember, paying off your debts is a step in the right direction, but it does not repair your credit.
With these factors in mind, consumer credit counseling can be a life-saver if you're over your head and need some help and some breathing room.
Lexington Law - Legal and Effective Credit Report Repair. Learn more
More credit repair FAQs here.
Consumer Credit Counseling Service or CCCS is a nonprofit debt counseling service that assists consumers who are over their heads in debt. CCCS is funded and controlled by the credit grantors and the credit bureaus.
Often, CCCS provides a beneficial service to the consumer. Because of the obvious allegiance between CCCS and the credit bureaus, you cannot reasonably expect CCCS to do anything that the credit bureaus would frown upon, such as help you repair your credit.
In fact, if you decide to leave CCCS before you have finished their program, they can list your failure to complete the process as a negative listing on your credit report (though this is rare.) When you are participating in the CCCS program, your creditors will often note it on your credit report. If you have perfect credit, and wish to keep it, you may not want to use a credit counseling service. These services usually create negative listings because their process will generally make you late on your bills at least 30 days.
The fact that you resorted to a debt counseling program is a red flag for prospective credit grantors. Remember, paying off your debts is a step in the right direction, but it does not repair your credit.
With these factors in mind, consumer credit counseling can be a life-saver if you're over your head and need some help and some breathing room.
Lexington Law - Legal and Effective Credit Report Repair. Learn more
More credit repair FAQs here.