Repair your Credit Report

Can A New Horizon fix my credit report or clean it up?
No. If negative comments on your credit report are correct, they can remain in your file for up to seven years from the date of the last activity, except for bankruptcy, which can remain for up to 10 years. Avoid organizations offering "credit repair." Upon completion of the Debt Consolidation/ Debt Management Program, we suggest that you obtain a copy of your credit report to make sure it is accurate. If you believe there are errors in your credit report, notify the credit bureau in writing to dispute the incorrect information. The bureau will follow up your request with the creditor. If the creditor agrees with your assessment, your report will be changed. If the information is correct, the account will remain on your credit report for as long as your creditor chooses to report the account. This cannot exceed 7 years unless again, bankruptcy happens, which then will remain on your report for up to10 years.

How will credit counseling affect my credit report?
As far as your credit report, we as an agency do not report to the credit reporting agencies, nor does a New Horizon, it is up to your creditors discretion if they choose to or not. About 70% will. If they do a DM or a CC will appear next to each account that you enroll. This stands for Debt Management or Credit Counseling (which means the same thing). It means a third party company is taking your money each month and paying your creditors with it until balance is paid in full. Once the credit cards, reporting agencies and future lenders see your monthly payments are consistent and on time, most will view the Debt Consolidation/ Debt Management Program as a positive move, in an effort to satisfy your debts and rebuild your credit.

If you are current on your accts, we would strongly suggest continuing on making payments to your creditors until you “officially” get started with A New Horizon. This way you will not fall past due.

Until very recently, the company that calculates your Fico Credit Score, Fair Isaacs, included enrollment in a Debt Consolidation/ Debt Management Program as a factor that lowered one's credit score. However, their research told them that enrolling in a Debt Consolidation/ Debt Management Program had no effect whatsoever on determining whether one was a good credit risk or not, so they removed Debt Consolidation/ Debt Management from consideration. Therefore, the answer to the question, "will enrolling in credit counseling lower my credit score" is no, it will not. A notation on your credit report that you are in Debt Consolidation/Debt Management will not lower your FICO credit score.

However, that doesn't mean that Debt Consolidation/ Debt Management enrollment will not affect your ability to get loans and credit. Some lenders see Debt Consolidation/ Debt Management enrollment as a good thing -- that you are taking steps to get out of debt and manage your finances. Other lenders will see enrollment in Debt Consolidation/ Debt Management as an indication that you have too much debt and have mismanaged your finances. There is a good chance they will approve your loan, but it may be at a higher interest rate than those with good credit.

If you are thinking about lending and need a more specific answer as to how a future lender will view Debt Consolidation/ Debt Management, the best thing we can tell you to do is call the bank you are going to lend from. Ask to speak to a loan officer. Then ask the question “I am thinking about entering into a, Debt Consolidation/ Debt Management Program If I do, will you lend to me?” That way you would have a specific answer from the person who you would be dealing with.

Will creditors help mere-establish credit?
There is an increasing number of creditors who will consider granting credit to Debt Consolidation/ Debt Management Program graduates who have successfully completed their programs. Upon satisfactory completion of your program you may request the names of creditors who may be willing to re-establish your credit. You may then contact them and request that they re-open the originally account. If they will not re-open the account, you can then ask if they would issue you a new account.

Fill out the application on the next page or Enroll By Phone 1-800-413-4404 (9am-10pm CST Monday-Saturday) Click here for the free quote form!