As far as credit counseling goes, it is something that in my opinion should be avoided at all costs. While it will lower your monthly payments, your credit report may still show the accounts included in your credit counseling program as late if the payment you make is less than the minimum payment. And on top of that, most credit counseling programs don’t allow you to open any new credit accounts for a certain period of time as stated in the credit counseling contract. You definitely won’t be able to get a mortgage, so take extreme caution when going into contract with one of these companies.
The summary:
Fix bad credit in the following ways:
- Pay off debt
- Raise credit lines
- Resolve accounts in dispute
- Rapid rescore programs if there are errors or if you pay off debt
Avoid the following:
- Closing credit accounts
- Maxing out credit accounts
- Opening new credit accounts before or during mortgage application process
- Credit counseling programs
Article comments
1 - Marcos
Well this was helpful. I have low credit score and trying to refinance and this article helped me understand what I need to do to make my score better.
2 - Shiela
To get a house, get a car, have a credit card, and basically legally exist in the United States, you need to have credit. And if you want to have the best opportunities for success, you’re going to need GOOD credit. Yes, you did see those words ‘Good Credit’; it’s not an oxymoron " it’s quite possible!
3 - nickle young
Great!Well this was helpful for me. I have low credit score and trying to refinance and this article helped me understand what I need to do to make my score better.thank you!