Debt Management Program Question
REM # F609
By Ilyce R. Glink
Summary: A reader asks a debt management program question. Having nearly completed a program offered by Consumer Credit Counseling Service, the reader wonders what the implications will be on his credit report.
Q: I have been repaying $22,000 in debt through a Consumer Credit Counseling Service (CCCS) office. Next year I will be through with their debt management program.
What will end up showing on my credit report when I am done? The accounts will be paid off and closed. Does this end up hurting my FICO score? What should I do to raise my score?
I have paid my bills on time even when I struggled so that isn't any issue on my credit history. Last year we moved and I bought a house without too much problem except for not qualifying for as much as I would have liked to.
A: The folks at CCCS of Greater Atlanta tell me that simply entering a debt management program shouldn't lower your credit score. In fact, by making on-time payments and continuing to pay off your debt, your credit score should be fairly high.
Why don't you test the water and find out? Go to myFICO.com and pay $12.95 for a credit history and score and see what credit score you have right now. In addition, the site will give you specific suggestion based on an analysis of your credit history of what you can do to raise your score.
From what you've written, it sounds like you have taken control of your finances. Congratulations.
NOTE: This column is distributed by Real Estate Matters Syndicate, PO Box 366, Glencoe, Illinois, 60022. This column may not be resold, reprinted, resyndicated or redistributed without written permission from the publisher.
Revocable Living Trust And A Life Estate Deed
100 Percent Investment Property Loans
Creditors "Charged Off" Credit Account
Personal Finance Advice: Pay Off Debts or Pay Off House Loans?
Improving My Credit Score
Link to This Article
Like what you've read? Spread the word! You can link to this article
from your website by copying the following code and adding it to
a page on your website:
Copyright ©2001-2007. ThinkGlink, Inc.
All rights reserved. Reproduction of material from any www.ThinkGlink.com pages without permission is strictly prohibited.
Site designed by Walker Sands Communications
