How to Get Credit Score Counseling

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By eHow Contributing Writer

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If you are in danger of falling behind on your bills, or you already have, it may be time to consider credit score counseling. Credit counseling agencies renegotiate lower interest rates and consolidate payments. Reputable credit counseling services are typically nonprofits that are willing to work with you to get your debt paid off and improve your credit score.

Difficulty: Easy

Instructions

Step 1

Get your most recent creditor statements and bills together before you contact a credit counselor. You will be asked a number of questions about your current debt and spending and it will help to have your paperwork accessible.
Step 2

Choose a credit counselor. Make sure that your chosen agency is a nonprofit, such as Consumer Credit Counseling Services (see Resources below). Most counseling agencies will allow you to apply online or over the phone. A counselor will then follow up on your application.
Step 3

Go over your current financial situation with your credit counselor. They will assess your current debts and spending and determine where their agency can help.
Step 4

Establish a debt management plan with the help of your credit counselor. It will include repayment schedules and financial goals. The counseling agency will help negotiate payments and interest rates with your creditors.
Step 5

Follow through on your debt management plan. By the time you have completed it, your credit score will have risen. Your credit counselor will also be able to advise you on maintaining good financial habits to keep your credit score up.

Tips & Warnings

Credit counseling is especially helpful if your debt is subject to high interest rates.
Repayment plans typically roll all of your payments into one payment to the agency, who will then disburse your payments to your various creditors. Consider setting up an automatic payment to the agency to make sure your monthly payment is on time and in full.
Credit counseling agencies will also provide you with education on how to manage your finances effectively and improve your credit.
If you create a debt repayment plan with a credit counseling agency, that fact will be noted on your credit report. It can be harder for you to get certain types of credit, such as mortgages.
There are some creditors that do not work with credit counselors. Your counselor will be able to advise you about your specific creditors.
Avoid "debt settlement" agencies and for-profit credit counselors. Using these companies can reduce your credit score.