Does Consumer Credit Counseling San Antonio repair your credit?
There is much confusion about what CCCS does for people in San Antonio, some think they help repair your credit, others think they settle your debts- we are here to set the record straight.
We have had many a phone call to our office requesting information about our services and many times our clients ask us if we similar to a consumer credit counseling service. Most people do not realize that there are big differences between CCCS, debt settlement, and credit repair. Our objective for our clients is to assist them in improving their credit reports be auditing their files and ensuring that the information on them is reporting within the guidelines of the law- in particular the FCRA. We explain to our clients that CCCS and debt settlement are also two very different things. Here is a short summary of the differences and when it is best to use them.
CCCS-A non-profit organization that assists individuals who are “drowning” in high interest credit cards and debts, CCCS can help someone in need of reducing those sky high rates on their credit cards and make one easy payment each month to repay what they owe. This can improve your credit score by reducing your balance to limit ratios, however in most cases the credit report will show that the client is on a repayment plan and this can hinder a person’s ability to get approved for something on credit. In 90% of cases CCCS will NOT improve your credit and in fact in some cases can make it worse. We recommend Cornerstone Financial Education out of Austin to assist you with this category.
Debt Settlement-A company or organization that will negotiate settlements with your creditors for lower dollar amounts, works well for individuals with accounts that have already charged off and the balances owed to those creditors/collectors is very high. Debt settlement can be a useful resource in satisfying debts which is very important for multiple reasons. Our recommendations are to do plenty of research first before hiring a company for this due to the fact that in most cases you will be required to pay quite a bit of money into an account first before the company will begin helping you settle your debts, most of the money that is put into that account initially actually goes to the settlement company itself. A good resource for DIY assistance is a book titled Negotiate and Settle your Debts. Debt settlement will NOT help you to improve your credit score in any way and in some cases may actually lower it.
Credit Repair-A company or organization that works on behalf of clients to ensure that all items on a consumers credit report are reporting accurately, timely and verifiably. A credit repair company will do absolutely nothing for a client in regards to the debt itself, credit repair companies who state that their service eliminates debts are simply LYING. As with the other two examples always do your research first before hiring one and make sure they are in compliance with CROA. Here is an article with some important warning signs to look out for in regards to credit repair companies in San Antonio. Obviously a reputable credit repair company WILL help you in improving your credit if you qualify for assistance.
For information regarding our services, please request a FREE CONSULTATION with a FICO Certified Professional.