Will there be permanent record of having applied for debt review?

This is one of the questions that I am constantly asked by consumers who are faced with the decision to place themselves under debt review. It is a very good question to ask because one has to be aware of all the pros and cons of any debt solution before they sign up.

When a consumer applies for debt review, the consumer’s profile is flagged as under debt review on credit bureaus. After paying off his or her debts the consumer, the debt counsellor issues a clearance certificate and simultaneously notifies all credit bureaus that the consumer has paid off all his obligations.

Credit bureaus will then remove the debt review flag on the consumer’s profile. Within 1 month the under debt review profile on the consumer is removed completely. There will be no permanent record of having undergone debt counselling on credit bureaus. Therefore, the consumer can get new credit after applying for debt review. The consumer should be able to attain a good credit score as they build a new credit history.

This answers the question of whether one can get credit after applying for debt review. Furthermore, it does not make business sense for any credit provider to hold the consumer against having applied for debt review if the consumer has surplus income and can pay their monthly obligations.