Credit Myth #9 of 10 (Series 1)

This mistake can be fatal if you are gonna be buying a home.

Q:If I’m having trouble paying my bills, I can go to Consumer Credit Counseling Service and they will help me to restore my credit.

A:Consumer Credit Counseling Service or CCCS is a nonprofit debt counseling service that assists consumers who are over their heads in debt.

CCCS is funded and controlled by the credit grantors and the credit bureaus. Often, CCCS provides a beneficial service to the consumer. Because of the obvious allegiance between CCCS and the credit bureaus, you cannot reasonably expect CCCS to do anything that the credit bureaus would frown upon, such as help you restore your credit.

In fact, if you decide to leave CCCS before you have finished their program, they can list your failure to complete the process as a negative listing on your credit report.

When you are participating in the CCCS program, your creditors will often note it on your credit report. The fact that you resorted to a debt counseling program is a huge red flag for prospective credit grantors. Remember, paying off your debts is a step in the right direction, but it does not restore your credit at all!

Also another KISS of death is child support obligations. If you are not current according to underwriter guidelines in most cases you will not qualify for a home loan until you come current. Like any other information reporting on your credit, child support late payments can be challenged for removal as well. Don't delay, begin restoring your credit today!

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