Why Use Credit Counseling Services for Bad Credit?

What is Credit Counseling?

When considering various methods or finance companies that claim to assist people with improving their financial status, it is a good idea to place a credit counselor close to the top of the list. Most of these "non-profit" counseling agencies specialize in helping people with bad creditfinancing better manage their funds, and how to properly attack past debt. They also offer each client advice on how to follow a budget with their monthly income that will be able to prevent future debt.

Now how and where can you find a credit counseling agency in your area? According to the Federal Trade Commission locations such as universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service offer their own credit counseling programs that people can use. The FTC also warns people that despite most of these programs being non-profit organizations there are still instances where payment is required, and prices can become very expensive.

Choosing Good Counseling Programs

Individuals who are able to contact a reputable counseling agency usually receive good advice how to overcome financing with poor credit scores, while also getting the proper tools to prevent any future damage to their credit. However, not every so-called "credit counseling company" is 100% legit, and it's your job to spot the scammers before they cause additional problems to your credit.

The FTC advises the individuals pose the following 10 questions to their counselor before fully committing to their service:

• What services do you offer?
Certain counseling programs provide more or less services. Be sure to find one that can cater to every need you have, while avoiding ones that only push a debt management plan without properly reviewing your credit situation.


• Do you offer information?
A good credit counseling company will provide you with enough free information about themselves, what they offer, and other educational material for free.


• In addition to helping me solve my immediate problem, will you help me develop a plan for avoiding problems in the future?
Once again, you want to make sure that the program you enroll in not only solves your current bad credit auto loans problems, but offers future advice and tips as well.


• What are your fees?
Since all services may not be free, be sure you know how much you may be asked to spend before starting their program.


• What if I can't afford to pay your fees or make contributions?
Remember, you don't always have to give in to a companies demands for payment when there are plenty of other credit counselors that improve credit situations for free or less expensive services.


• Will I have a formal written agreement or contract with you?
When dealing with your finances and verbal promises of repaired bad credit it's important to get everything in writing, and never sign any document without thoroughly reading it from start to finish.


• Are you licensed to offer your services in my state?
Certain credit counseling agencies are seen as illegal in select states and you want to find this out ASAP. You can often times question your state Attorney General or local consumer protection agency about this.


• What are the qualifications of your counselors?
Always make sure you're placing your financial information in the hands of a professional that can provide accurate and helpful guidance.


• What assurance do I have that my personal information (address, phone number, and financial info) will be kept confidential and secure?
Unfortunately all credit counselors are legit, so do your due diligence and be sure your information is protected so that you don't become a victim of fraud or identity theft.


• How are your employees paid?
You want to make sure that money you have to pay to counseling program is not the same money that is going to employees. This can result in additional charges or trying to get you stay with the program longer.

By asking the necessary questions you can find the best credit counseling company to help with improving your credit and financial situation with ease. If you are unable to locate a credit counselor program in your community, you can always apply for a financing with us. We can connect you with a local dealer with great rates and able to help you improve your poor credit rating.

Here at AutoNet Financial we help connect people with bad credit car loan dealerships that can offer them financial assistance. All you have to do to is earn over $1,500 per month, and have some form of employment to qualify for poor credit auto financing.