Credit Repair Through Credit Counseling
Home & Mortgage
Managing your money is no different to any other skill in life - some people seem to have a natural ability to do it well, whereas most of us need to learn how to do it well. With debt so common nowadays with the widespread use of credit cards, personal loans and mortgages, managing your money well is more important than ever. The better your history of dealing with your debts and creditors, the easier you will find it to access more funds when you need to.
If, however, you mess up and miss some payments or get into default with a creditor, your credit history will suffer. Having a poor credit rating can adversely affect you for years, limiting your opportunities for finance. The sooner you get started on the process of credit repair, the quicker you will be able to build your credit rating back up to a level thats acceptable to lenders. A credit counselor can be a great help, because of their wide experience in repairing credit.
Credit counseling is usually offered by non-profit groups. There are some companies that offer credit repair services, but these are different. They should also be avoided, as many are set up as scams, particularly those that advertise online. You can find yourself in a worse situation than ever if you fall victim to one of these fraudulent schemes. Some credit repair companies are reputable, but do you really want to hand over more money to them to do things that you can do for yourself? Plus some will use questionable techniques to repair your credit, including trying to get a clean credit rating using an alternate address.
A credit counseling service, however, is there purely to provide advice. Their advice is generally sound, because theres no profit motivating them to recommend certain services or strategies that may in fact be inappropriate for your situation. So using a credit counseling service is a sensible way to develop and pursue a credit repair strategy.
Its also important to realize that it doesnt matter who helps you, rebuilding a poor credit history does take considerable time and effort. Again, a credit counselor is more likely to give you a realistic picture of whats involved in repairing your credit, so that youre not disappointed when the problem doesnt just disappear overnight. You need long-term plans, and you need the discipline to stick to them. A credit counselor will help you to develop a strategy that is manageable and effective for you.
Most credit counseling services will provide advice, educational materials and even workshops to help you get back on track. Another element of your finances that they can help you with is establishing a budget. Having a clear idea of how your money flows in and out every month will make it easier to stick to your budget and repair your credit. Some services will also give you personal advice and coaching specific to your situation, giving you the tools you need to make good economic choices for your own circumstances.
This is the big difference between credit counseling services and credit repair companies. You should be suspicious of any company that basically gives the same one size fits all solution to their clients. It might sound good when a company says they can fix your credit no matter what, but without knowing something about your personal circumstances, nobody can make that sort of claim. A credit counselors main objective is to understand your individual circumstances, so that they can provide a solution specifically for your situation.
The other benefit of using a credit counselor or credit report service is that their solution is meant to be a permanent one. So once you get your debts under control, work out your budget and stick to it, long-term your financial circumstances will begin to improve. This means that even when your credit repair is complete, you will have learnt the tools and techniques you need to prevent you from getting back into trouble. A quick fix from a credit repair company may feel good to begin with, but unless you learn what you did wrong, you wont be able to stop it from happening again. So approach a credit counselor if you want your credit repair to be permanent.
Need a free credit report or want to quickly and easily improve your credit score? Try visiting free-online-instant-credit-report.info, a popular free credit report website that provides tips, advice and resources to include information on credit report repair, credit report scores, credit report services and credit report disputes.
Credit tips and tricks! Get articles, news and the best information for credit on the net.