When I began credit counseling, I was worried about the potential negative impact that it would have on my credit score. Since I wouldn't have available credit with four cards with balances, I assumed that my credit score would tank.
Periodically, I check my score to see how it is doing. When I started CCCS in April 2009, my score was around 650. I've never been late on payments, so that was solely due to the high debt to available credit ratio and high balances. I checked my scores in April on both Credit Karma and Quizzle and they both reported that I was around 680. I assumed that this improvement was based solely on the fact that I had slain the devil Citibank. I was excited that my score increased 30 points at my one year anniversary with CCCS.
I recently got emails from both sites stating that I should check my score again. Since it's been about three months, I figured it would be a good time to take a peek.
My credit score is now at 725! I've finally gotten it back over the 700 mark!!! Woohoo. I assume this is due to the progress that I've made on my KILL DISCOVER campaign. Plus, all of my cards have much lower balances than they did previously.
In addition, I opened an Amex Zync account. (Oh, how I love that card. There are no words to express my dedication.) I use it for everything that I used to buy with my debit card and since it is a charge card, it gets paid in full every month. This is always at least $1000-1500 since it has groceries, meds, gas and everything else on it. I believe this also helped push the credit score up.
If you are someone considering credit counseling and you are worried about your credit score – don't be. My credit score has increased by 75 points in 15 months with CCCS.