No. Participation in a debt repayment plan will not erase a poor credit history. Under the Fair Credit Reporting Act, accurate negative information about credit use (for example, late payments and collections) can stay in someone's credit report for up to seven years, and a bankruptcy can be reported for 10 years. On the other hand, credit counseling agencies can help people lower their outstanding debt balances and make debt repayments on time. Demonstrating a pattern of timely payments can help those who have had a poor credit history gradually improve their credit score.
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