Consumer Credit Counseling Service agencies are nonprofit agencies in communities throughout the U.S. that offer free or low-cost services to help individuals and families resolve financial difficulties.
Types of Assistance
CCCS offers educational services, such as financial counseling, credit report review, bankruptcy counseling and housing counseling. If you are having difficulty meeting your debt obligations, a CCCS debt management plan might reduce your interest rates and fees, allowing you to make lower monthly payments.
Potential Affect
Participating in a CCCS educational program to increase your financial knowledge will not adversely affect your credit score. If you participate in a debt management plan, though, your creditors might report that you are in a debt management plan that you are not repaying your debt as originally agreed. Because 35 percent of your FICO credit score is based on your payment history, this can negatively affect your FICO credit score.
Timeframe
Late payments will remain on your credit report and will influence your credit score for seven years. Keep in mind, though, that your credit score is a holistic evaluation of your creditworthiness and also depends on the amount of debt you owe, how long you have been using credit, how much new credit you have and the different types of credit you have used.
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