Credit Guides And Credit Services

Non-profit credit counseling agencies enjoy special benefits because of their status. There is a tax advantage; non-profits enjoy tax exemptions on both a state and federal level. Non-profit agencies are also eligible for both public and private grants to support their mission.

Credit Pacific Service Union Non-profit agencies have a better reputation among both creditors and debtors. In order to initiate Fair Share contributions, non-profit status is mandatory. Some states even allow non-profit agencies greater freedom from consumer protection laws. Debtors feel more comfortable dealing with a non-profit agency than one with a more commercial focus.

Danielson, who hosts a weekly radio show called "The Consumer Fight Back Show, " said that many of the people in the credit counseling industry are "collection agencies in disguise." He said the most famous organizations, profit National Foundation For Consumer Credit (NFCC) and Consumer Credit Counseling Services (CCCS), are actually a set of " profit franchises" that earn billions of dollars each year, primarily serving creditors' interests.

Credit First Service Union Most major credit counseling agencies flaunt their status as non-profits, but some fail to live up to that promise. Some unscrupulous agencies are using their non-profit status to lure in unsuspecting clients and to fleece them. Debtors need to look beyond the non-profit label and investigate the agency before enrolling in a credit repair program.

"Fair Isaac and Company (FICO), has publicly stated that since 1999 FICO has completely ignored any credit report mention of a Debt Management Plan arrangement with any counseling agencies. This is great news for consumers and credit counselors both. Therefore, credit counseling and DMP services do not negatively affect credit scores. As to consumers' ability to obtain credit, it is the discretion of individual creditors as to how they interpret a consumer's credit report history and their decision to extend credit, " NFCC stated on its Web site.¹⁹¹

Card Credit Mobile Service Some consumer credit counseling agencies are truly in it to help people get back on the road to financial well-being. Agencies accredited by the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies offer reputable services to their clients. Such agencies will not make false claims about fixing credit histories or credit scores; they will paint a realistic picture of your situation and tailor their actions to meet your needs.

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Card Credit Discover Service Before enrolling in a credit counseling program, you should research the agency carefully. Check with the Better Business Bureau to see if the agency has a history of complaints. Visit online forums to read reviews from former clients. Make sure that the agency is reputable and reliable before granting access to your financial information.

Gardner, now an attorney in Dallas, Texas, said the only organization he knows that ethically helps consumers is First Stone Credit Counseling (FSCC), ¹⁸⁹ and its affiliate company, the People's Credit Bureau (PCB).¹⁹⁰ Based in Dallas, the two companies are run by Bruce J. Danielson, a former pilot and military veteran. Danielson said First Stone is the only Consumer Advocate Credit Counseling organization in the country because it helps the consumers organize their matters and clean up their credit reports.

Credit Public Service Union Solid, reputable credit counseling agencies are an invaluable resource for debtors who have reached the end of their financial rope. A good credit counselor will work with you to create a personalized budget and debt management plan, while working with your creditors to reduce monthly payments. Lowering interest rates and erasing finance charges and late payment penalties are another way a reliable counselor can help you. A counselor's ability to eliminate phone calls and dunning letters from creditors is enough to make most consumers glad they chose to enter credit counseling.

If you aren't disciplined enough to create a workable budget and stick to it, can't work out a repayment plan with your creditors, or can't keep track of mounting bills, consider contacting a consumer credit counseling service. Your creditors may be willing to accept reduced payments if you enter into a debt repayment plan with a reputable organization. In these plans, you deposit money each month with the credit counseling service. Your deposits are used to pay your creditors according to a payment schedule developed by the counselor. As part of the repayment plan, you may have to agree not to apply for, or use, any additional credit while you're participating in the program.(By the way, Consumer Reports magazine had a great article on Credit Counseling in their July 2001 issue. In the article they discuss private credit counseling companies as well as the traditional Consumer Credit Counseling Service organizations.)

Card Credit Processing Service Michael Martin is a knowledge seeker and publisher of FinancialKnowledgeCenter.com. Here he provides more information on credit cards, credit counseling and The How To's of Credit Counseling Agencies that will engage your curiosity and stimulate your mind.