How to select a credit counseling service

In view of some unscrupulous consumer credit counseling services taking unsuspecting people for a ride, it has become important to be extremely careful in choosing an agency. One has to consider a number of factors before he/she makes the final choice. To begin with, it makes better sense to opt for a credit counseling service that is non-profit. As experience is an indication of reliability, the service or agency should have been in existence for at least a decade.

Look for accreditation

It is essential that you select a credit counseling agency that is accredited by the Council on Accreditation (COA) or the International Standards Organization (ISO). If the agency claims to be so, you should also go on to check if the accreditation is still valid and has not lapsed earlier. Also see to it that the credit counseling service is certified by an independent organization. In case you are burdened with more than credit card debt, you would do better to seek the assistance of an agency certified by the Department of Housing and Urban Development (HUD).

You should always keep it in mind that you are handing over your personal financial information and also money to the credit counseling service. So it is better if you thoroughly check them out to ensure that they are reliable and legitimate. In order to do this, you can get in touch with your local Better Business Bureau (BBB) on their web site and inquire about the number of complaints filed against the agency you are considering and how many of them remained unresolved. It is only natural to have some complaints, but most of them should be resolved if the agency is reliable.

Collect information

It is essential that you select a credit counseling agency that is accredited by the Council on Accreditation (COA) or the International Standards Organization (ISO). If the agency claims to be so, you should also go on to check if the accreditation is still valid and has not lapsed earlier. Also see to it that the credit counseling service is certified by an independent organization. In case you are burdened with more than credit card debt, you would do better to seek the assistance of an agency certified by the Department of Housing and Urban Development (HUD).

You should always keep it in mind that you are handing over your personal financial information and also money to the credit counseling service. So it is better if you thoroughly check them out to ensure that they are reliable and legitimate. In order to do this, you can get in touch with your local Better Business Bureau (BBB) on their web site and inquire about the number of complaints filed against the agency you are considering and how many of them remained unresolved. It is only natural to have some complaints, but most of them should be resolved if the agency is reliable.

The web site of the National Association of Attorneys General (NAAG) lists contact information for the office of the Attorney General (AG) in each state. To collect information about a credit counseling agency, you can contact your state AG and inquire if the agency has faced legal action or complaints by clients. You can also visit the GuideStar web site for information about an agency.

It is wise to choose only those services that do not charge exorbitant fees, are ready to waive the fees if they are beyond your financial capability. You should also make sure that the agency offers written plan and a written budget depending on your personal financial condition.