How does credit counseling impact your credit rating?
Participating in a credit counseling program will not affect your credit score; however, it can negatively impact your ability to get financing, if a particular lender looks on participation in credit counseling unfavorably.
It is important to know that it might be difficult for you to get credit while you are participating in a credit counseling program, and in fact, you might be asked to refrain from seeking credit as a condition of participating in the program. If you or the credit counseling service does not make monthly payments on time as agreed, creditors will report this to the credit bureaus, and the late payment notations on your credit report will definitely lower your credit score significantly.
