Finding the Right Credit Counseling Service

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Posted: Tue Jan 11, 2005 11:35 pm
Post subject: Finding the Right Credit Counseling Service

Dan
Date: 8/30/2000 6:36 pm CDT

I still have perfect credit for awhile. I had a couple business ventures go bad and was financing them with credit cards....now that I am at my limits my cards interest cates have gone between 21% and 25%. It looks like I will need to use some kind of credit counseling company but do not know which one to use. Do I use a non-profit one like American Consumer Credit Counseling or a private one like www.a1consolidate.com or even myvesta.org. How do I go about comparing which one to use or are they all the same.

Or do I use more than one?

Also I am assuming as soon as I use one, my credit will go bad even though I have never been late on a payment.

I see you are affiliated with American Consumer Credit Counseling so you will get $20 if I sign up through you so again it is hard to get unbiased information.

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Posted: Tue Jan 11, 2005 11:37 pm
Post subject: Finding the Right Credit Counseling Service
Board Monitor - AD
Date: 8/31/2000 7:55 pm CDT

Dear Dan,

Finding the right credit counselor can be tricky. Basically, you'll want to shop around and not sign up for the first service you encounter. Compare prices and services, and ask for referals! You might also want to check to see if any complaints have been filed with the Better Business Bureau (www.bbb.org). Also, it does help if the credit counseling service is recognized by a national organization, such as the Association of Independent Consumer Credit Counseling Agencies. And make sure that the counseling service is licensed to offer services in your state.

In answer to your question, you only need one credit counseling service. And in terms of creating a bad credit history, you'll want to speak with the counseling service to find out how transactions are reported to the credit bureaus. If anything is noted about you acquiring the services of a credit counselor, it will look better than receiving negative marks for missing or late payments from your creditors. It also, depending on how future creditors look at it, may show that you were responsible in seeking additional help (though not all creditors may look at it that way).

Here are some links to further assist you:

Aricle about containing information in general about credit counselors:
http://www.ftc.gov/bcp/conline/pubs/credit/kneedeep.htm

List of Credit Counselors:
http://www.aiccca.org/

Sincerely,
Alex Daskaloff
http://www.creditcardfreedom.com

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archive
Posted: Tue Jan 11, 2005 11:38 pm
Post subject: Finding the Right Credit Counseling Service

Dana
Date: 9/2/2000 11:12 am CDT

Dan,

A word of advice, DO NOT GO TO CONSUMER CREDIT COUNSELING OF ANY KIND! It can effect you credit worse than a bankrupcy. I work for a lender on home loans and there are some lenders that will not lend to someone that has been in credit counseling. Most of the credit reports I have seen that have gone to credit counseling have rolling lates from the time they enter, this can kill your credit score, which is what lenders look at for grading your credit: IE- lower score much higher rates! Consumer cerdit counselors tend to not make your monthly payments on time!! Look for other ways to get credit under control.

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