Legal Credit Repair Services

Finding trustworthy legal credit repair services is not easy – there are simply too many bad apples in the barrel. Here are reviews, tips and links that can help you chose a legal and reliable credit repair counselor.

Important facts to consider when choosing credit repair/debt management services

• The credit repair/debt counseling agency should be a non-profit organization. This is actually very important.
• They should be in business for at least ten years.
• Their counselors should be certified by an independent organization such as the National Foundation for Credit Counseling (NFCC)
• The credit repair/debt counseling agency should be accredited by the Council on Accreditation.

Legal credit repair services are usually also debt management counseling services, which are almost entirely non-profit organizations. Their counselors will not pressure you to join any Debt Management Program (DMP), because they do not profit from it.

This doesn’t suggest that the program is free. Joining a Debt Management Program can cost up to $40 per month, but ONLY if you can afford it. In many cases the first 6 months’ fee is waved, and in some cases even more.

What happens when you join a Debt Management Program?
To start with, when you enter a DMP you must stop using credit. In addition, your credit reports will show “In Debt Management Program“, which might disqualify you from getting new credit. Your Fico however will not be effected by this, so you will not experience adverse effects on existing credit lines (See Factors Excluded from the Fico Score). When you complete the DMP, that status will be removed from your files.

Can legal credit repair services help me negotiate better terms?
They certainly can – that’s part of the program. They help consumers negotiate reduced payments (usually down to to 2% of their total debt) and favourable terms .

They’ll discuss your entire financial situation and help you develop a plan based on the best option for your personal financial needs. In addition, they will offer you free education on personal finance, using credit and more.

Which are the most reliable legal credit repair services?
The National Foundation for Credit Counseling (NFCC) is a highly reputable non-profit credit counseling service. It is also a certified pre-bankruptcy counseling, so their counselors can look at your whole financial picture and advise you on how to proceed.

They will help you negotiate lower payments and interest rates, so that you can pay off your debt. By the time you complete their program, you will have decent credit. Most reviews basically call them angels from above.

Another very large non-profit credit counseling service is Money Management International. They have offices in more than 24 states, and offer counseling 24/ 7 over the phone as well as the Internet.

Suggested Reading
Fast Credit Repair Scams – A detailed discussion on how to detect credit repair scams and what you need to know before heading to a ‘Credit Clinic’.