Credit Counseling vs Credit Repair

 In Credit Repair

Credit repair should not be confused with other credit services such as debt consolidation, credit counseling, debt negotiation, or debt settlement. Credit repair is helping consumers dispute and delete inaccurate, unverifiable, and untimely items on their credit report that are being illegally reported. Credit repair is also about helping consumers understand their credit and helping them build positive credit so they can have the positive credit profile and score they deserve.

Debt consolidation

Debt consolidation is the process of combining all outstanding debts in one loan account. The purpose of debt consolidation is usually to lower monthly repayments or lower interest rates on a loan.

Credit counseling

Credit counseling is advice given by counselors to people about how to use credit responsibly and how to get out of serious debt. When a person participates in credit counseling their creditors may note it in their credit reports. The fact that they have resorted to a credit counseling program is a huge red flag for prospective credit grantors. Remember, paying off debts is a step in the right direction, but it does not restore credit.

Debt negotiation

Debt negotiation or debt settlement is when a 3rd party negotiates with creditors and establishes a payment plan on behalf of the debtor. Debt settlement companies often claim they can negotiate with your creditors to reduce the amount you owe. They often charge fees and typically encourage you to stop paying your credit card bills until they can negotiate. If this takes a long time, you may incur hefty late fees and extra interest.

Credit repair is the best way to eliminate debt and increase your credit score. To get started repairing your credit today, contact the Credit Care Company at 314-485-9940. We believe that everyone deserves a second chance when it comes to their credit. We strive to help our clients achieve the best credit score possible.


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