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Originally Posted by SimpleMind
Thanks for the response!! How will credit counseling show up on my credit report? Will there be a notation from the Credit Card company? And if I talk for a better rate with the card company myself will that be reported as well? What is the length of time that will show up on my report? Is it the typical 7 years?
Credit Counseling seems a little shady. All these places advertise they are non-profit but yet charge hefty fees. Credit Card companies don't negotiate period. They have a strict set of guidelines the debt managment programs must follow. The card companies still dictate the rate, payment amount, and period of time to pay off the debt. Isn't it false advertising to say they negotitate for a lower payment and better rate? All these credit counseling places do is follow each card companies guidelines, and send them a proposal.
I might go ahead and put up the 2nd home for sale as is. At least it might get me out of the loan. The payments are only $156.00 escrow included. I don't have utilities hooked up. The payment is my only liability.
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I apologize for not getting back to you earlier...
Better late than never, eh?
Credit counceling shows up on your report as basically a notation - but it will also damage your score. Additionally, many lenders that I've worked with will rate those consumers that are in credit counceling as bad or worse than those that have recently declared bankrupcty.
If you call the cards yourself and negotiate a lower rate, it will not show up on your bureau.
Although I am by no means an expert on credit counceling services, I deal with a number of clients that have had experiences with them. Unfortunately, I have yet to run across anyone that has had a positive experience. You're right - they basically just follow the credit card companies policies, and instead of you mailing the checks out to the companies, they have you mail just one to them (plus, of course, their fee) and then distribute it accordingly.
I would definately recommend not using one if at all possible - you're going to be just about as successful negotiating a lower rate or specific payment terms on your credit cards, and you don't run the risk of the credit councelling agency being late on your payments (a situation I have seen countless times) further damaging your credit. Just take the fee that you would be paying the credit councelling service and put that much extra on one card.
As far as non-profit is concerned, personal experience has lead me to believe that it basically just translates to "tax breaks" in the corporate world. Everybody's gotta make money somehow - they have to pay their employees, keep a roof over their head, advertising, ect just like any other company. To be perfectly honest, the absolutely most aggressive financial institution I ever worked for - and the most concerned with profit - was a local credit union.