Choosing the Right Credit Counseling Agency for You ? Some Tips Part 2

Credit counseling companies come in all shapes and sizes. Whether you are looking at working with a local credit counseling organization or a national credit counseling organization there are some very important factors to calculate before choosing the right credit counseling option for you. Here is a list of questions for you to ask a credit counseling company before determining whether or not you should participate with their organization.

Licensing Requirements-

Credit counseling organizations are held to certain standards by state regulatory officials. Credit counseling organizations are required to adhere to state licensing requirements. It is important that you ask the credit counseling organization if they are compliant and able to offer credit counseling services in your area. Keep in mind though, that although a majority of states have requirements for credit counseling organizations not all do. You may want to check your particular states finance and banking department if you have questions regarding the status of the credit counseling organization you are speaking with.

Credit Counselor, or Not?-

Credit counseling has been around for years. However, recently credit repair or debt settlement companies have sprouted up everywhere. Credit counseling has a proven record of working for consumers. Recently credit counseling organizations have come under fire from the press and IRS due to a few bad seeds. These companies were not credit counseling to its truest form. Credit counseling was created with the consumer in mind, some companies failed to recognize that.

Along with the credit counseling industry in a little turmoil over the bad seeds more and more credit repair companies making false claims came along. Credit counseling took a hit for that although the two practices are entirely different. Then you have debt settlement. Debt settlement companies claim they will have your debt paid off in a short time. It would be nice if they were paying it all back, but they are not. You also get extremely past due and your credit can be ruined for a long time. Sometimes these companies call themselves credit counselors. Credit counseling is for the best interest of the consumer. Make sure to ask the organization you are speaking to if they are a credit counseling organization. Ask if they have certified credit counselors staffed.

Non-Profit-

Credit counseling organizations typically hold a 501c3 status with the IRS. This means that the credit counseling organization carries a non profit status with the IRS. Credit counseling organizations that utilize the non profit status are held to higher standards by the IRS. There are caps on the fees they can charge and it is expected that the credit counseling organization is designed to educate the public about debt. Not all non profit credit counseling organizations use the non profit status for the best of the client. Check with the credit counseling company you are thinking of working with and ask them if they are a licensed non profit credit counseling organization. Then ask them what they do to earn that status. If a counselor can not tell you it may be an indicator to look for another credit counseling organization to work with.

Rick Munster is the Media Planner for Debt Reduction Services, http://www.debtreductionservices.com. When he's not busy developing a media plan he enjoys writing or getting away to mountains for a little fishing and hiking.

---

A Summary of the Fair Credit Reporting Act

This summary of the Fair Credit Reporting Act will explain what you can legally do if you want to repair your own credit report. No matter what... Read More

Are you paying higher interest on your credit cards than you think?

Many credit card holders sign up for a credit account with an 8.9% interest rate and then later realize that their interest rate has been bumped to... Read More

Finding Reputable Credit Card Companies

You're interested in getting the best credit cards for your family's needs, but you don't want to be cheated. Or you're interested in small business credit cards,... Read More

Have You Checked Your Permanent Record Lately?

As a young student I feared getting bad grades because I didn't want any bad marks on my "permanent record." Get an "F" in fifth-grade science and... Read More

Start Building Credit Fast!

There are a couple of reasons for this. You can pay your bills on time for years and never gain more than a few points on your... Read More

Rate Tarts Losing Ability to Cherry Pick

A "rate tart" is someone who switches from one zero per cent introductory credit card deal to another to avoid paying interest; however they may be set... Read More

The Right Way To Credit Repair

If you have a bad credit rating, then you might find that your ability to get financing, loans, and even some jobs is greatly diminished.Once you have... Read More

Cash Back vs. Rewards Credit Cards

Ah, the sweet rewards of using credit!Not only do you get immediate gratification with the buy now-pay later plastic, but now, many credit cards offer rewards and... Read More

Collection Agency Secrets for Collecting on Bad Debt

Getting worried that one of your clients, customers or patients will never pay? Have you given up on a customer who's essentially said he won't pay? Congratulations--being... Read More

How Businesss Mess Up Their Credit Policies

In "Become the Squeaky Wheel" a book recently published, Michelle Dunn demonstrates the major areas a business should focus on to ensure a satisfactory customer experience.One mistake... Read More

Fight Credit Card Fraud with Common Sense

By now, you have undoubtedly heard of credit card fraud, an alarming and damaging trend that is sweeping the country. Here's the bad news: It is disturbingly... Read More

Identity Theft : They Got Him

His hard earned money? Gone. Creditors on his back everyday. Police knocking on his door. His family strained to the breaking point. He didn't do anything wrong... Read More

Reward Credit Cards: Get the Best Rewards Card Incentive Program

A good credit reward card can contribute to your retirement account, offer gas rebates, score theme-park or vacation tickets or take thousands off the price of your... Read More

SuperCharged Secret 5, Credit Card Utopia

LIVING IN CREDIT CARD UTOPIALet's just take a brief moment to recap:If you've been following along on this journey with me, learning the 5 Super-Charged secrets to... Read More

Identity Theft ? Guard Your Childrens Social Security Numbers

Identity theft is a growing concern among Americans, and rates among the top five complaints received by states' Attorney General's offices. A stolen identity can lead to... Read More

Credit Enhancements: Seven Tips For Enhancing Business Credit Transactions

What are the avenues available to businesses with weak credit profiles or to companies pursuing credit transactions that are perceived as too risky by credit providers? Many... Read More

Cutting Credit Card Costs

What are the APRs charged by the credit cards in your wallet? If you are paying more than 12% interest on any of them, you are probably... Read More

Why Is It important!

Your credit is the most important thing you have other than your breathe. There are three types of people in this world. There are those who have... Read More

Your Credit Rating and How To Check It

There is a lot of confusion surrounding UK credit ratings, credit scores, credit blacklists, credit reports, and credit files. This guide to your credit rating aims to... Read More

Important Things to Know About Divorce and Credit

Joint debts remain joint debts.Both spouses signed a legally binding contract with the creditor, and a divorce decree neither amends this contract nor relieves the creditor's investment... Read More

Repairing Your Credit Score and Clearing Derogatory Marks on Your Credit Report

Raising your credit score can be a fairly simple and straightforward process unless you have derogatory marks that need to be disputed (which will be explained below).The... Read More

Choosing The Credit Card That Is Right For You

Credit cards represent an important part of our financial lives. Having the right credit cards is essential and will make a big difference to your finances. Before... Read More

Collection Agencies: What Do They Do?

Collection agencies are businesses that collect past-due bills and accounts receivable for other persons or businesses in exchange for a fee. Collection agencies charge for their services... Read More

Manage Your Credit Wisely

Getting your first credit card is a big deal and all young people look forward to it with bated breath. We wait for years to be able... Read More

Credit Card Security Advice

Which of the following is the biggest threat to your credit card security?a) Shopping online with a credit card b) Shopping in a real store with your... Read More

19,178 Identity Theft Victims Per Day - Are You One Of Them?

Identity theft statistics are shocking. And we are told that it will only become worse, before it gets any better. Are you likely to be affected? According... Read More