Comments on: How to Tell if a Credit Counseling Service is Legit http://www.askmrcreditcard.com/creditcardblog/how-to-tell-if-a-credit-counseling-service-is-legit/ Latest Credit Card News, Reviews and Information Thu, 20 Nov 2008 17:04:33 +0000 http://wordpress.org/?v=2.6.3 By: Polly Poorhouse http://www.askmrcreditcard.com/creditcardblog/how-to-tell-if-a-credit-counseling-service-is-legit/#comment-85872 Polly Poorhouse Tue, 14 Oct 2008 04:46:27 +0000 http://www.askmrcreditcard.com/creditcardblog/?p=551#comment-85872 This post represents great advice. So many organizations are poised to part debtors from what little money they still have. I would add that even among the legitimate credit counselors, it may be more beneficial to work with your creditors directly. I found that one of the big agencies could only offer to lower rates on two credit card companies. Rates from two more issuers would actually have gone UP under their plan. I did better on my own. Maybe you can too. To take a stab at answering Sharon's question, I think that when you agree to work with a credit counselor you must close all your credit accounts, and that can negatively affect your credit score, especially if it is marked as closed by lender. Even if it isn't, closing multiple accounts can change your debt to available credit ratio, which, again, can hurt your score. As I understand it. I even had a lender offer NOT to report they had closed the account if I would agree to pay an additional fee. Doesn't that sound like hush money? This post represents great advice. So many organizations are poised to part debtors from what little money they still have.

I would add that even among the legitimate credit counselors, it may be more beneficial to work with your creditors directly. I found that one of the big agencies could only offer to lower rates on two credit card companies. Rates from two more issuers would actually have gone UP under their plan.

I did better on my own. Maybe you can too.

To take a stab at answering Sharon’s question, I think that when you agree to work with a credit counselor you must close all your credit accounts, and that can negatively affect your credit score, especially if it is marked as closed by lender. Even if it isn’t, closing multiple accounts can change your debt to available credit ratio, which, again, can hurt your score. As I understand it.

I even had a lender offer NOT to report they had closed the account if I would agree to pay an additional fee. Doesn’t that sound like hush money?

]]> By: Sharon http://www.askmrcreditcard.com/creditcardblog/how-to-tell-if-a-credit-counseling-service-is-legit/#comment-81807 Sharon Sun, 07 Sep 2008 00:32:34 +0000 http://www.askmrcreditcard.com/creditcardblog/?p=551#comment-81807 I am considering credit couseling services. Someone told me if I decided to go through with the program, it could impact my credit - making it worse than bankruptcy. Is this true? I'm having a hard time believing it is, but I'd like to get another opinion. Thanks I am considering credit couseling services. Someone told me if I decided to go through with the program, it could impact my credit - making it worse than bankruptcy. Is this true? I’m having a hard time believing it is, but I’d like to get another opinion. Thanks

]]> By: Carnival of Financial Planning #8 - Cute Kitten Edition | Financial Learn http://www.askmrcreditcard.com/creditcardblog/how-to-tell-if-a-credit-counseling-service-is-legit/#comment-76782 Carnival of Financial Planning #8 - Cute Kitten Edition | Financial Learn Sun, 20 Jul 2008 04:53:02 +0000 http://www.askmrcreditcard.com/creditcardblog/?p=551#comment-76782 [...] Credit Card presents How to Tell if a Credit Counseling Service is Legit? posted at Ask Mr Credit [...] [...] Credit Card presents How to Tell if a Credit Counseling Service is Legit? posted at Ask Mr Credit [...]

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