Tag Archives: companies
How Credit Counselors Can Damage Your FICO Credit Score! (Page 1 of 2)
Credit Counselors and Debt Consolidators are dominating the Internet, newspapers, magazines, radio, and television with ads promising to give you a miracle cure for your poor credit history and your poor FICO credit rating. This appears to be great news. Let’s see if it really is good news.
Of course there are some credit counseling agencies and debt consolidators that can actually help get people out of debt. But there are many such services run by con artists who are after your money, money you probably can’t really afford to spend. And, sadly, they have no intention of helping you.
There are trustworthy companies and shady companies among the hundreds of credit counselors and debt consolidators, and, good or bad, all appeal to your emotional distress to get out of debt. Let’s consider the differences.
The Best Credit Counselors.
These services will actually help you clean up your credit history while improving that all important FICO credit score. They will help you realize where you went wrong with your credit decisions and then devise a plan to start correcting your bad habits.
Once your spending is under control, they will help you create a budget so you can change your money management style and stay out of debt and live a more stable financial life.
The Debt Consolidation Shell Game.
These companies operate with a slightly different agenda and my advice is: You should only consolidate your debts when you have exhausted all other avenues. It’s true that debt consolidators also help you get out of debt, but they do so by making deals with your creditors to combine all of your obligations into one large loan with one monthly payment.
The pitch they make is deceiving. Yes, the payment on the consolidated loan will total less per month than the total of your current payments but, usually, the interest rate on the consolidated loan is high because you are high risk. This means you will end up paying back more in interest in the long run.
Again, avoid debt consolidation and, if you need outside help, go with a debt counseling service instead. They will monitor you and keep you from falling back into the habits that damaged your credit history in the first place. Consolidators, on the other hand, will only be concerned about you making your monthly payments on the new loan for which they collect a fee.
The ‘ Fix My Credit ‘ Crooks!
These crooks are obvious. Any ‘ fix your credit ‘ offer that claims they can magically erase your debt without you lifting a finger (except pay them) is a scam. Think about their claim. Creditors would have to forget you owe them money. Why would they do that? Some of these scams are designed to force you into bankruptcy. Sure, your debts will be gone but the record stays in your credit report for up to 10 years and your FICO credit score will plummet.
How do you find a reputable credit counseling company?
Debt Leads – How to Succeed With Debt Settlement Leads
Debt Settlement leads and Debt consolidation leads are 2 very aggressive spaces in the advertising world. So where does each and every brand new and old store start and end – good Internet leads, obviously. Here are some excellent questions to ask a new credit card debt lead service provider so you can avoid the trap a lot of have dropped into whenever very first buying from a brand new source.
Tips on how to Generate your own Leads?
If your guide service provider fails to answer this easy question, run! Assuming they are doing response, this can be a difficult one. Most lead companies will now state, “Pay per click and SEO”. There are several, of course, that do use these methods but not many. The reason why so many lead providers state the reason being they believe it is what you want to hear. The very best response you are able to listen to is really a “mixture” of methods such as email marketing (which is very effective).
Are They Exceptional or Shared?
Do not waste your money on exclusive debt consolidation leads simply because most of the time the leads are usually sold away again anyhow. Discover to end up being proficient at what you do and beat your competition.
Prices
Inexpensive prospects are generally bad. You don’t want to overpay but something among $11-15 discussed is usually the standard. Be cautious of $6-8 leads – they are “aged” 90% of times. In the end you have to check with one hundred leads and assess based on nothing but ROI. Too many debt companies are sidetracked by the recognized quality of every guide when there is nothing that matters other than the end result. Make sure you have phone benefits and find out exactly what your come back is actually after tests 100 (call each one till you reach all of them).