When not to use a credit counseling program
There is a little secret that credit counseling agencies don't tell you. When you enroll on a debt management program, your credit cards will be frozen, leaving you with a negative ratio of debt to available credit. This will significantly affect your credit scores. As your access to credit is eliminated, you will also be on a path towards disaster if you don't have savings and an emergency occurs.
source: daytipper.com NL (3-14-08)
p.s. There are other reasons not to use a CC agency. Go to the consumer link at
www.ftc.gov and read the drawbacks the FTC points out.
Wow. That's good information to know. Why don't they tell you this up front?
Now I was told something different than what I just read. I was told that credit couseling doesn't affect your credit score but it does and can affect you getting financing. If a lender notices that you are participating in a credit counseling it comes off to be unfavorable.
