There is a big misconception regarding what is reported to the credit bureaus while
you are on a debt consolidation program.
Debt Consolidation is designed to assist people who are in a financial bind. Banks
may report to the credit bureaus that your accounts are handled by a debt management
agency. This is not the same as filing bankruptcy which is a common misconception.
One of the most important factors that the credit reporting agencies consider when
determining your score is timely payments. This shows lenders that at one time you
may have gone through a little financial distress but now have opted to take care
of your financial obligation rather than possibly giving up an defaulting on your
agreement with your creditors.
When your accounts are behind, by enrolling with our agency you can get most of
your accounts re-aged, in other words brought back to a current status. Once you
establish an agreement to pay back your obligation and your payments are timely
every month, with time
your credit score will show that you are on the right track. On the FICO website
myfico.com under “What do FICO scores ignore” it clearly states credit counseling
does not affect your score provided you are making timely payments
Do not get the wrong idea that just because that is stated it means that your score
is perfect. In order for this program to work, you must make your payments every
30 days as your creditors require and it is also your responsibility to read all
your statements to make sure that the information is correct. If a problem is spotted
you must notify your debt-counseling
agency immediately. Dept Options likes to establish a relationship with all of our
clients and we must work as a team to accomplish our main goal which is to give
you the freedom of living a debt free life. If you have any questions please contact
one of our customer service specialists.
