A credit counseling service can be a good option if you’re committed to improving your credit score. Unfortunately, unscrupulous services charge substantial premiums and claim to clean up your credit score, without any real benefit–often leaving you worse than when you started. If you’re in debt and looking for a way out, here are the items to watch for.
DO Choose an Agency That Works With All Creditors
Make sure to choose a credit counseling agency that has the capacity to work with any and all of your creditors. If your primary goal is to improve your credit score, you’ll need someone who has the experience to negotiate with all of your creditors on your behalf. Watch out for agencies who say they don’t work with certain creditors. At Increase Your Credit Score, we have extensive experience with all types of creditors, and are focused on creating the best debt plan for your specific situation.
DON’T Commit to a Debt Management Plan
If a credit counselor pressures you to enter a debt management program without providing other options, you should find another counselor. This is a big red flag if the debt management plan is presented before the counselor fully reviews your financial situation. The debt review process should be comprehensive and include a wide variety of options to best fit your personal situation. When you choose Increase Your Credit Score, we will help you select the best debt management plan among our many different options.
DO Expect Complimentary Educational Materials
A credit counseling agency with a solid reputation should be able to provide assistance in the form of complimentary educational materials about its services without charging you. You should expect to receive free information about what your options are, what you can expect, and exactly what services are available to you.
DON’T Sign a Contract Without Reviewing it First
Most credit counseling agencies will want you to sign a contract once you’ve chosen them, but be sure to review the terms before signing. The terms included in a formal written agreement are legally binding and should also include all verbal promises that may have been made. If you don’t understand something in the contract, ask the agency for clarification before signing. At Increase Your Credit Score, transparency and personal service are our top priorities. We’ll walk you through all of the details for your particular situation so you know exactly what services will be implemented to improve your credit score.
