It depends. In most cases, the act of receiving budgeting advice and counseling services from a credit counseling agency will not impact your credit score. For example, references to credit counseling are ignored in the creation of FICO scores by Fair Isaac and Company. However, if you enroll in a credit counseling agency's debt management program (DMP) and adjustments are made to lower your monthly debt payments, this could lower your score. If you make late payments either before or after you began the plan, they may also be regarded negatively.
If you're currently in a DMP, check your credit report, upon which your credit score is based, to see how your accounts are being reported. If one or more credit accounts do not have the notation "current" or "paid as agreed" in your credit report, this could be an indication that your credit score was negatively affected by DMP participation.
We would like your feedback on this Personal Finance Frequently Asked Question.
