Understand the Difference between Credit Counseling and Credit Repair
Here’s one you have undoubtedly encountered regardless of your credit situation: “We can erase your bed credit today, simply call the toll free number below…†I hate to be the bearer of bad news, but there is no such thing as an erase your debt service. Avoid “credit repair†companies at all costs.
Realize however that there are legitimate nonprofit credit counseling services out there who provide a much-needed service to those in need. A typical counseling service will advise you in managing your money, offer solutions to your current financial problems, and develop a personalized plan to help you prevent future difficulties
The difference is that some organizations claim to offer credit-repair services; In other words for a fee they can repair or alter your credit history. In reality the only way to fix or repair a rough credit history is to repay current debt and to make all of your payments on time.
No company has the ability to simply erase data from an individual’s credit report. This practice would not only be unethical but it would be fraudulent (and illegal) as well. If in doubt about a credit counseling firm’s reputation, don’t hesitate to call the Better Business Bureau or your state’s Attorney General.
In addition, check with the National Foundation for Credit Counseling (NFCC) for legitimate service listings. They exist as a watch dog for credit counseling services so that potential consumers have a place to turn to when in doubt.
For more information on the NFCC, head over to: http://www.nfcc.org/
