Credit Counseling Has Lost Its Credibility

Credit counseling services have acquitted a stigma incredit bureaus stating that the information reflected
the United States. To blame for this negativeis incorrect and demand this information be removed
perspective on these services rests on those credituntil an investigation is completed. Credit bureaus
repair counselors who have deceived and misled theirremove the negative information and wait for a
clients.report to come in. The credit companies will then
General advice is that you should repair your creditprovide their clients with a "clean" report to show
on your own if you can. Do not visit a credit repairthat their credit rating has indeed improved. The
counselor if you can avoid it, with one reason beingproblem is when, or if, those negative notations
that you will need to share information which may bereturn following the investigation.
mishandled later. Credit consolidation or working withThis does not intend to mean that every credit repair
creditors to reduce your interest rate on credit cardsorganization is illegitimate or a scam. Some agencies
of credit loans may be good options to pursue, butare honest and have earned their reputation. Such
should be researched thoroughly to determine if it willagencies can be trusted to remove negative
actually help your credit situation and not damage itinformation which is actually incorrect. This is,
further in the long-term.however, the most that a credit repair agency can
Most creditor counselors do little to help your creditdo to improve your rating. No agency can remove
score while most offer debt reduction. This is not thenegative information that is correct and this
same as improving your credit score. The reality isinformation remains on your credit report for seven
that your credit counselor may actually reduce youryears from the time it is reported. Even worse, a
credit rating if they do not submit your payments onbankruptcy remains on a credit report for ten years.
time, which sometimes does occur. Your credit reportIt is always a better option to handle credit issues
will include a note such as "30 days late" which couldyourself. Choosing this option will avoid providing
be avoided if you are submitting the paymentspersonal information and you will know what your
yourself.actual credit rating is.
Some credit repair companies may mail letters to the