Need a better credit score? Consider counseling!
At least that's one conclusion of a Georgetown University (and Trans Union) scientific study of clients seeking help from member agencies of the National Foundation for Credit Counseling. Most clients get assistance in the form of advice, a budget review, and written action plan, but in one-third of cases, the agencies arrange for creditor concessions in the form of reduced interest rates, fees and minimum payments as part of a Debt Management Plan.
To measure effectiveness, the study looked at before and after credit score. Those in the bottom 10% at the start of the study had, on average, more than a 36 point increase in credit score by the end of the study, three years later. (Those with higher credit scores at the start didn't see quite as much improvement, on average. In fact, overall, only half improved their credit score.)
Here's the complete study on the Impact of Credit Counseling. (Requires the free Adobe Acrobat Reader.)
Here's another article about credit counseling.
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