Advertiser Disclosure

How to Get Help With Credit Problems

Written by Allison Martin

Allison Martin is a personal finance enthusiast and a passionate entrepreneur. With over a decade of experience, Allison has made a name for herself as a syndicated financial writer. Her articles are published in leading publications, like Banks.com, Bankrate, The Wall Street Journal, MSN Money, and Investopedia. When she’s not busy creating content, Allison travels nationwide, sharing her knowledge and expertise in financial literacy and entrepreneurship through interactive workshops and programs. She also works as a Certified Financial Education Instructor (CFEI) dedicated to helping people from all walks of life achieve financial freedom and success.

Updated February 19, 2024​

5 min. read​

Managing your credit can sometimes feel like a daunting task, especially if you’re unsure about where to start. But with the right guidance and resources, you can navigate the world of credit and be on your way to better financial health. 

If you find yourself in need of credit help, various non-profit organizations offer free credit counseling and debt management assistance. In addition, these organizations can guide and support you as you work toward improving your credit health. 

Read on to discover other helpful information regarding credit help and how to make the most of the resources available to you.

Loading... Loading...

Do You Have Credit Problems?

Credit problems can be a cause of concern and stress, but there are ways to handle them and improve your situation. 

Understanding your credit report and credit score is the first step to tackling your credit problems. It’s a detailed record of your credit history and contains information about your loans, credit card debts and payment habits. You should review it periodically to ensure there are no errors and to monitor your progress in managing your debt.

Common Credit Problems

Below is a closer look at some of the most prevalent credit problems faced by consumers. 

Lack of Credit History

Having a lack of credit history can be problematic, as lenders may be hesitant to approve you for loans, mortgages or credit cards since they don’t have enough information to assess your creditworthiness. To establish a solid credit history, consider opening a secured credit card or becoming an authorized user on someone else’s credit account. Then, be sure to use the card responsibly and pay off the balance in full each month to build a positive credit history.

Late Payments

Late payments on your credit accounts can also have a significant negative impact on your credit score. Setting up automatic payments, creating reminders and prioritizing your debts can help prevent late payments. If you already have late payments on your credit profile, focus on bringing those delinquent accounts current. Also, stay on track moving forward to help improve your credit score over time.

Inaccurate Credit Information and Errors

Inaccurate information and errors on your credit report can lower your credit score and make it difficult to qualify for credit. By getting a free credit report from each of the three major credit bureaus, you can review your credit report for any inaccuracies or errors. If you find any, dispute them with the credit bureaus and information furnishers promptly to have the incorrect information removed from your report.

Low/Bad Credit Score

A low or bad credit score can limit your access to credit or result in higher interest rates when securing a loan or credit card. To improve your credit score, focus on paying your bills on time, reducing your credit card balances and diversifying your credit mix. Also, avoid applying for new credit you don’t need. 

Fraud or Identity Theft

If you’re victimized by fraud or identity theft, it can severely damage your credit. Monitor your credit reports regularly for any suspicious activity. If you find any unauthorized accounts or charges, take immediate action by:

  • Alerting the credit bureaus to place a fraud alert on your credit report
  • Filing a report with law enforcement in your local area
  • Contacting your creditors to dispute the charges and closing compromised accounts
  • Filing a complaint with the Federal Trade Commission (FTC)

Can You Get Help with Credit Problems?

It’s possible to get help with credit problems. That said, it’s essential to take action as soon as possible. There are several resources available to assist you with your situation.

Consider seeking advice from a debt counselor. They can help you understand the best way to deal with your debt, offer guidance on debt management and educate you on other resources and debt management options that may be available to you. 

What Kind of Help Can You Get with Credit Problems?

Credit Counseling

If you’re struggling with credit problems, credit counseling services can be a valuable resource. A reputable credit counselor can help you by assessing your financial situation and creating a personalized plan to improve your credit score. They can also provide budgeting advice and money management tips and even suggest a debt management plan (DMP) to help you manage your credit card balances and other unsecured debt.

Credit Debt Relief

Another option for dealing with credit problems is seeking debt relief. It involves working with you and your creditors to negotiate lower interest rates or reduced monthly payments. This can help you pay off your debts faster and potentially improve your credit score over time. When choosing a credit debt relief service, be sure to research the company thoroughly before signing up. 

Loading... Loading...

Debt Consolidation

Debt consolidation is another effective way to manage multiple debts. You’ll get a single monthly payment that makes it easier to pay off your debt and improve your credit score. Keep in mind, though, that consolidating debts can sometimes extend the repayment period, which could cost you more in interest over time. 

Credit Restoration

Credit restoration services can help fix mistakes on your credit report that could be negatively affecting your credit score. If you find errors in your credit report, you can contact the credit bureau and the company that provided the information and ask them to rectify the error(s). In addition, you can restore your own credit or hire a company to do it for you.

How To Get Help With Credit Problems

There’s no shortage of options to get the assistance you need to help resolve your credit woes. 

Choose Which Type of Service is Best for You

Before diving into the world of credit help, assess your financial situation and identify your needs. You may benefit from credit help services, credit counseling or a debt management plan. Each has unique features and benefits, and some may work better for your situation than others.

Take Into Account the Type of Credit Problem

Different types of credit problems require different solutions. If you have issues with your credit reports, such as errors or inaccuracies, consider contacting the credit bureaus first. If you struggle with managing your debts, a credit counselor might be a better option.

Compare Your Options

Once you know the type of help you need, start researching different agencies and services. Create a list of potential options and carefully compare their offerings, fees and terms. This research will help you make an informed decision and ensure that you find the best solution for your needs.

Seek Help from a Reputable Company

Not all credit help companies are created equal. When looking for assistance, prioritize reputable companies with positive customer experiences and avoid those with multiple complaints or questionable business practices. You can check the reputation of the companies through government websites or customer review platforms.

For example, The Credit Pros is a company accredited by the BBB and has an excellent Trustpilot rating, offering services such as credit report corrections, increasing credit scores, or establishing credit. They also offer a 100% 90-day money-back guarantee, so you can be assured that they are always providing the best service to get you fast and effective results. Complete a short form or call (888) 558-1602 to get a free consultation with no obligation to sign up.

Get Services That are Practical and Effective

Understanding your credit problem is also vital, but so is finding a service that can effectively handle it. Focus on finding a company with a proven track record that provides practical solutions tailored to your unique financial situation.

Evaluate Track Record and Customer Reviews

Customer reviews and company track records serve as reliable indicators of the service quality you can expect. Look for agencies with positive feedback and success stories. This will help you gauge their effectiveness in helping individuals with credit problems like yours.

Choose Someone Who Can Help You for the Long Term

Credit issues are rarely resolved overnight. So, choose a company or counselor that can support you over time by providing ongoing advice, assistance and resources to help you navigate and overcome your credit challenges.

Be Wary of Scams

Unfortunately, scams do exist in the credit help industry. Be vigilant, and watch out for red flags such as lofty promises or guarantees, unusually high fees or a lack of transparency. Stick with trustworthy companies and double-check with sources like the Better Business Bureau (BBB) and the Consumer Financial Protection Bureau (CFPB) to confirm you’re dealing with a reputable entity. 

Remember, finding the best credit help for your situation takes time and research. By considering these aspects and comparing your options carefully, you’ll be well on your way to resolving your credit problems and achieving financial stability.

Loading... Loading...

Advertisement Disclosure

Product name, logo, brands, and other trademarks featured or referred to within Banks.com are the property of their respective trademark holders. This site may be compensated through third party advertisers. The offers that may appear on Banks.com’s website are from companies from which Banks.com may receive compensation. This compensation may influence the selection, appearance, and order of appearance of the offers listed on the website. However, this compensation also facilitates the provision by Banks.com of certain services to you at no charge. The website does not include all financial services companies or all of their available product and service offerings.
×