As soon as you qualify for the process, the credit providers and credit bureaus will be notified. The bureaus will then add an debt review flag to your credit profile.
Whenever you go to the bank or a lender to apply for credit, they will run a credit check. When you enter debt counselling, your credit profile will indicate this fact. So, when credit providers draw a copy of your credit report, it will show that you are under debt review and they will thus reject your credit application.
Once you have paid off your debts, your credit applications will no longer be rejected
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