Will credit counseling appear on my credit report?

Only creditors can report your actions to the credit bureaus. Most creditors look favorably upon individuals who are making an effort to pay back their debt and do not report you to the credit reporting agencies. Creditors realize the individual is attempting to make payments on his or her debt and view this as a positive step in the right direction. They are often willing to negotiate terms of repayment in order to receive timely and consistent payments. Some creditors do report an individual's participation in a debt management program to credit reporting agencies. However, there are two things consumers should know: (1) Once an individual makes three timely and consistent payments, creditors often will re-age the account to current status, which helps individuals repair their credit rating. Unfortunately, there is no quick-fix solution to repairing credit. It involves making consistent monthly payments until the debt is paid in full; (2) each consumer has the ability to add a 15-line statement to his or her credit report explaining the circumstances for needing a debt management program.