How does credit counseling affect my credit score?

Enrolling in credit counseling will have negative implications to your credit score. You must close all enrolled accounts, which lowers your utilization ratio and could shorten your credit history. Both these factors will cause a decline in your credit score. Missing payments during the transition will also directly affect your score.

How long will credit counseling remain on my credit report?

5 years: When you enroll in credit counseling there is a notation placed on your credit file. The notation remains as long as you are enrolled, which is a maximum of five years. Any missed payments or other derogatory information will stay on your report for seven years.

How long will it take to rebuild credit after credit counseling?

Paying all remaining debts, such as a mortgage or car payment, will help rebuild your credit while in a debt management program or DMP. However, if you keep a credit card open at enrollment to expedite your credit recovery, enrolled creditors could refuse your repayment plan. Getting a new credit card during the program could also result in enrolled creditors revoking concessions, making it more challenging to rebuild credit while in the program.

Credit Score

16 Sep

How Credit Counseling Influences Your Credit, Even If It Does Not Directly Lower Your Credit Score

Posted Under: Blog , Credit Counseling , Credit Score , Debt Relief

GREAT! You’ve decided to finally do something about the tens of thousands of dollars you have in credit card debt. ...

REPRESENTATIVE EXAMPLE OF APR

For example, a $30,000 loan with a 4.99% APR over 5 years (60 months) would result in a monthly payment of $566, with total interest paid amounting to $3,959.97. This could save you thousands in interest compared to higher-rate debt.

ANNUAL PERCENTAGE RATE (APR)

Annual Percentage Rate (APR) represents the annualized interest rate you are charged for borrowing. It is the combination of the nominal interest rate and some additional costs such as fees involved when incurring debt. Our lender offers APRs for personal loans, cash advance loans, installment loans and debt consolidation loans from 4.99% to 35.99%. Since New Start Capital does not directly issue loans, we cannot deliver any specifics or guarantee the APR you will be offered. The APR depends solely on your lender’s decision, based on various factors including your credit score, credit history, income, and some other information you supply in your request. For more information regarding the APR contact your lender.