How Will Enrollment Affect My Credit Rating?, Debt Consolidation Loans, Debt Consolidation Services Loan

What affect enrollment in a Debt Management Program will have on your credit report is entirely in prospective with your current credit rating. For the typical debtor in need of a debt management program, enrollment "improves" their credit rating.

For consumers enrolled in a Debt Management Program, most creditors report delinquent accounts as "current" after receiving one to three consecutive payments as arranged by and paid through the debt management agency. The process and time frame varies with each creditor and type of account. Some creditors, however, do not re-age accounts and may continue or begin to report accounts as delinquent.

You should assume that all accounts may run at least one month late during the initial phase of the program. This may occur even on those accounts that are current upon enrollment. Also, due to some creditors' requirement of waiting until three consecutive payments as paid through the agency prior to re-aging the account, a "past due" status may occur for up to four months and late fees may also be assessed during this period. In most cases, creditors have a system in place so that this initial past due status is not indefinite and typically returned to a current status within one to four months of enrollment.

As this is an important issue to most consumers, we have written an extensive article on this subject which we encourage you to read. For more information,