If you have a prior history of using consumer credit counseling services (we called it “ccc”) and it reflects on your credit report, it might have a negative impact on your loan application. To lenders, that means you are incapable of handling your own finances and need help by utilizing this service. Weather or not your loan application will be impacted as the result of this, it really depends on the type of loan program you are applying for and individual banks guidelines. Nowadays, as long as you are no longer using this service currently, a simple letter of explanation should allow you to move forward with your loan application. When your write this letter, be very detailed explaining what got you into that situation and how you are no longer in that situation in the future will help. Some lenders will approve your loan as long as you provide proof of a good payment history. Therefore, don’t forget to keep a record of all the payments you have made through this service. It shows lenders you are committed to catching up with all your personal debts and increase your chances of getting your loan application approved.
However, if you are still participating on this service currently, your chances of getting an approval will be less.