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Credit Counseling Companies
Credit counseling companies are not always what they appear to be. While many credit counseling companies, both for profit and not for profit, are very legitimate businesses with only the consumers best interest at heart, some unscrupulous operators are giving that industry a bad name. A few issues have arisen over the last couple of years that relate to the actual status of some companies that claim to be not for profit, how money they charge consumers, and who exactly pays the costs of some of these firms. Credit counseling companies in a number of states have drawn the attention of the Federal Trade Commissions office which has so far as to shut some of these businesses down completely and others have been fined and threatened with similar action if they do not change some of their practices. These charges have shone a new spotlight on a segment of the financial services sector, which had been operating with little attention, and out of control, according to some knowledgeable observers and industry watchers.
Several credit counseling services that have been under the Federal Trade Commissions magnifying glass are the National Consumer Council which has been masquerading as a not for profit agency while simply raking in profits like they were going out of style. One of the most famous or infamous amongst this group is Ameridebt that was shut down for defrauding individual Americans who were seeking debt relief of millions of dollars in hidden fees and charges. Other for profit companies providing credit counseling have also been exposed as serving several employers as they receive funding from the credit card industry to cover all of their overhead costs. Not only is the money they receive from clients pure gravy but also a lot of observers are questioning their loyalty to the people that they are in business to serve. Several class action lawsuits are already winding their way through the court system on this apparent conflict of interest.
Another major area of contention has arisen about the validity and effectiveness of the whole credit counseling process on the credit rating of the individual who goes through this process. There are a few flaws in the current process that actually make it harder and longer to regain your credit through this process than even through bankruptcy. If the intention is to avoid bankruptcy shouldnt credit counseling ameliorate this situation rather than making it worse? There are plenty of great credit counseling firms in the marketplace. Just be sure to do your checking first because sometimes credit counseling companies are not what they appear to be.
Credit Repair Kit
You cannot be denied credit based on your sex, your age, race, marital status, or religion.
Only borrow what you can afford to repay in a reasonable period of time. This total is the AC (Accelerator Margin). In the event that you are denied credit, the creditor must provide you with a written statement that includes the reason your credit application was denied. Once youve made the decision to do something about the high amount of debt that you owe youll need to learn how to manage your money as well as start making your payments. A few issues have arisen over the last couple of years that relate to the actual status of some companies that claim to be not for profit, how money they charge consumers, and who exactly pays the costs of some of these firms.
If everyone agrees then you end up with a low monthly rate, your creditors get back as much as possible of what is owed to them, and you are on the way to redeeming your good standing in the credit community and getting out of debt.
You might want to consider consolidating two or more credit cards if you have them. However, there are few agencies that pretend to be non-profit, but keep a part of consumers' money with them. Credit reports often have mistakes on them and you are more than welcome to dispute any items you do not agree with.
Once that is complete you can once again begin to use credit as a mechanism to finance your needed purchases.
However, your creditors are likely to report your account as under credit counseling or debt consolidation program. Most times your creditworthiness will only be determined on your ability to pay back the money. Once we realize that it is too late. If you have negative items on your credit report it is wise to start changing your payment habits immediately and start working towards good credit now. If that is unclear in their ad you can certainly ask them for that information when you call them. Debt and credit counseling services offer professional and timely advice to help save your credit rating, your car, your home, and even your life. |
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