Credit Help Programs: Reliable Relief Options To Help You Breath Easier

sign bad credit buried in paper offering credit help programs

3 Interesting Things About Bad Credit Help Programs

Looking for credit help programs that may offer financial breathing room? If you feel like there’s a dark financial cloud following your credit history around, you should know that nearly 35% of Americans have credit problems.

man with empty pockets

In fact, other people have no credit history at all. But an increasing number of financial institutions are developing bad credit help programs designed for people with bruised credit histories.

Whether you have debt from a divorce or legal settlement, or overuse of credit, there are options to repair credit. While your debt probably won’t eliminated completely, collection and credit agencies would rather settle than keep sending out bills.

If you’re looking to make a big purchase, you might need to seek help to get back on track. Here are 3 important facts about bad credit help programs that can help you understand the path forward.

1. Credit Agencies Make Mistakes

Have you ever gotten a call for someone who has a vaguely similar name to yours? Have you ever received mail or a bill for someone with an alternative spelling to your own name?

When people open accounts over the phone with creditors, this is an extremely common issue. If your name is “Joe Greene”, there could be someone named “Joe Green” with terrible credit who is damaging yours.

If you’ve seen your credit score and you’re not happy with what you see, comb through each entry carefully. It can be hard to remember the address of an apartment you had for six months in 2002, but if something looks fishy, call a credit repair service.
This is so common that they’ll know all the right steps for you to take to dispute your credit report and repair your credit.

2. Repayment Plans Can Revive Your Score

While it might be daunting to think about paying off all of your debt, you don’t have to do it all in one lump sum. A bad credit help service can aid in negotiating with the collectors of your debt.

graph showing upward improvement

By getting on their good side and lowering your debt, you’ll see your credit score start to climb back up. On top of that, you might be able to negotiate to a smaller number than you originally owed.

While you may not be adding your creditor to your Christmas list for next year, you can rebuild the relationship in a mutually beneficial way.

3. Most Debts Circulate Around

Most collection agencies buy debt from credit card companies and other collection agencies. If a stack of debts totals about a million dollars, a collection agency will offer to buy them for about half in hopes that they can get a return.

The problem with this is that if you’ve made progress or have received promises from your original creditor, they might not pass along. Credit assistance programs can track down every contact you had with the original creditor to ensure your prior agreements.

Bad Credit Help Can Save You Money

People with good credit get offered lower interest rates on their mortgages and loans. People who use credit help services can take advantage of these benefits by improving their credit.

If you’re ready to bring your credit score back up to where it needs to be, contact us today.

Get Control of Your Credit With Our Free Ebook

* indicates required



 

8 Comments

  1. Great information here Patrick.

    I had no idea that with someone with a similar name could ultimately hurt my credit score, now I understand why the credit score number is different for each company that runs it.

    Also thank you for the tip on disputing a credit report, I had no idea that was a thing. 

    Thank you again

    • No problem Jaron.  It’s great to hear the post was helpful.

      Credit reporting agencies make mistakes all the time, so it pays to keep an eye on them just to ensure there is no fraudulent activity or human errors attached to your account . 

      You can do this by pulling a free credit report every four months from each of the agencies.

      Lot’s of folks are not aware that they can dispute errors on their credit reports.  Always keep this in mind when you start seeing your credit score decline.

      It could be that someone is fraudulently using your identity or the agency has recorded a debt on your report in error. 

      Thanks

  2. Great article Patrick! 

    I had no idea how credit circulates. 

    I didn’t know how the collection agencies benefit from being a part of the circle, but I can definitely see how information can get lost since buying delinquent credit to get returns is their business.

    No wonder they do settlements as they do. Now, you have my wheels turning about this credit situation.

    Thanks for sharing. Great info.

    • Thanks Tiffany!

      Yep, it’s a game and if you understand how it works you can beat the system.

      Sometimes having someone in your corner that knows all the tricks can be extremely beneficial.

      Just remember everything is negotiable and if you are assertive you can save a bunch of money.

      Good luck.

  3. Hello,

    I’m curious to learn more about the credit repayment plans you mentioned. A lot of us have been at a point in life where we are in over our head with respect to credit. We need help! 

    Do most of the agencies that provide this service charge fee, and if so how much is it? 

    The other thing I was interested in was how long, on average, it takes for your credit score to begin to recover?

    Thanks!

    • Totally agree.  We just reached a total of one trillion dollars in consumer debt outstanding in our nation.  There has got to be a lot of people in over their heads.

      Most agencies will charge a fee but if you work directly with your credit card company or financial institution there would be no charge.  Some agencies offer credit help programs for free, but if you want credit management there will be a fee.

      You might also take a look at Lexington Law.  They offer credit repair services for a reasonable fee. Although I have not used them myself, I have some friends who tell me it has been very helpful for them. Fees range from $130 to $90 a month.

      It could take some time from several months to a year (if you are disciplined) for your credit score to improve. If your score is bad it could take even longer to get back to a decent credit score.

      For more debt management advice you might consider checking out the FTC website for some practical straight forward information about credit help programs.

  4. This is really good information.

    I have had my fair share of credit problems in the past and I have learned the hard way.

    I will be sure to share your post with others so that they know what to be on the look out for.

    In particular, I had many problems with negative information on my report that should have been deleted or removed long before it eventually was.

    How is it legal to buy a debt over and over again? Is there a time limit on that sort of thing?

    • Nate,

      I think everyone has experienced credit problems a some point their life.  It’s tough getting by, especially when starting out.

      If you don’t monitor your credit report on a regular basis, negative information, either by fraud or credit agency mistakes can do damage to your credit score.

      Get your free credit report from each of the credit reporting agencies every four months to monitor what’s going on with your credit report.  If you’re not proactive it can damage your credit standing.

      Buying debt multiple times is legal in some states, so research what debt collectors can do in your area. 

      If the price is right a debt collection agency might pay pennies on the dollar from another agency that has been unsuccessful in their collection efforts. Check your state to see what specific laws apply.

Leave a Reply

Your email address will not be published.


*