How often do you find yourself having to provide your Social Security Number to qualify for a new home loan, purchase a vehicle, rent an apartment or acquire basic utility services? We live in an era where your credit score defines who you are. Unfortunately, there is no tip-toeing around the subject or trying to negotiate a better rate on the existing credit score you have. This is the reality of credit, but it doesn’t mean you’re doomed to never secure financing.

As a credit counselor, I encounter clients from all walks of life and everyone has a story or particular circumstances as to why and how their credit has been jeopardized. The three most common clients I encounter fall within one of three categories:

1. The young professional who has accumulated debt because of student loans and credit card bills amassed during his college career.
2. The divorced couple where one spouse was primarily in charge of the bills and the other is left having to reassess finances.
3. The family who relied on credit cards to get through the tough economy, but are now faced with high interest rates and are just getting by with making minimum payments each month.

All of these clients are at different stages in their lives, but all have a common goal in mind: to improve their credit scores.

Sometimes I find myself playing the role of a therapist rather than a credit counselor. Half the battle is getting clients to admit to their past mistakes and convincing them to break old habits. Yes, disputing negative trade lines is a process of credit repair, but it doesn’t stop there. A credit counselor should also educate clients and point them in the right direction financially. If clients never learn how the system works, what is ultimately gained? The objective is to avoid reverting back to bad habits and having to resuscitate your credit all over again.

There are three things that you should always consider when seeking credit counseling:

1. Never believe a service that guarantees points your credit score will gain at the end of their program. There are too many variables involved and there‘s no way to know for sure what the end result will be.
2. Avoid working with a company that requires a large lump sum up front before they do anything. A majority of the top credit counseling firms require an initiation fee and then a monthly service fee to stay in the program.
3. Invest in a company that will give you their undivided attention. You should have one main point of contact who is always readily available to answer any questions or concerns you might have. Credit is a sensitive matter and no one wants to have to discuss one’s financial situation with a stranger.

Ultimately, you want to work with a company that is devoted to helping you qualify for financing. Do your research and familiarize yourself with the credit process before you meet with your credit consultant. If he isn’t willing to provide you with some feedback on your credit report up-front without a payment, then he’s probably not the right fit for you. Be mindful that it takes time to re-establish your credit, but a good credit counselor will guide you every step of the way.

Rick Oelkers graduated from The Catholic University of America in Washington DC, with a major in communications and a minor in anthropology. At Catholic, he was a rugby and varsity baseball player. He currently works for Credit Mindset™, working with clients and holding them accountable for the strategies he puts together for optimal results.

Similar Posts:

• Heading toward Foreclosure? Get Help with a Foreclosure Counselor
• Can You Suggest A Reputable Debt Settlement Service?
• Do you want to pay all your loans and credit card debts? Use debt management services
• Why it is important to effectively manage your credit score
• How Bad Credit Affects You